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Does the exchange rate regime affect expectation formation in the foreign exchange market? The case of a currency that is pegged to a basket
Author
Source
Economic Research Forum : Working Paper Series
Issue
Vol. 2002, Issue 201-240 (31 Dec. 2002)8 p.
Publisher
Economic Research Forum for the Arab Countries Iran and Turkey
Publication Date
2002-12-31
Country of Publication
Egypt
No. of Pages
8
Main Subjects
Topics
Abstract EN
An attempt is made to identify the expectation formation mechanism dominating the foreign exchange market when the domestic currency is pegged to a basket, using the Kuwaiti Dinar (KD) as the pegged currency.
The criterion used to identify the dominance or otherwise of a particular mechanism is the profitability of trading based on that mechanism.
It is found that regressive expectations are dominant, which is unlike what is found for floating currencies.
These results have implications for foreign exchange trading and for policy.
American Psychological Association (APA)
Musa, Imad A.. 2002. Does the exchange rate regime affect expectation formation in the foreign exchange market? The case of a currency that is pegged to a basket. Economic Research Forum : Working Paper Series،Vol. 2002, no. 201-240.
https://search.emarefa.net/detail/BIM-149221
Modern Language Association (MLA)
Musa, Imad A.. Does the exchange rate regime affect expectation formation in the foreign exchange market? The case of a currency that is pegged to a basket. Economic Research Forum : Working Paper Series No. 201-240 (Dec. 2002).
https://search.emarefa.net/detail/BIM-149221
American Medical Association (AMA)
Musa, Imad A.. Does the exchange rate regime affect expectation formation in the foreign exchange market? The case of a currency that is pegged to a basket. Economic Research Forum : Working Paper Series. 2002. Vol. 2002, no. 201-240.
https://search.emarefa.net/detail/BIM-149221
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references.
Record ID
BIM-149221