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CHAPTER V FORECASTING EXCHANGE RATES I. Forecasting ...

CHAPTER V FORECASTING EXCHANGE RATES I. Forecasting ...

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1.A.1 Fundamental Approach: Forecasting at Work The fundamental approach starts with a model, which produces a forecasting equation. This model can be based on theory, say PPP, a combination of theories or on the ad-hoc experience of a practitioner. Based on this first step, a forecaster collects data to estimate the forecasting equation.

  Forecasting

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