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- W3123020402 abstract "The forward-bias puzzle is probably the most important puzzle in international finance. But there is a simple solution. Covered interest parity implies that the forward-bias puzzle is the result of two omitted variables: (1) the future change in the forward exchange rate and (2) the future interest rate differential. As Table 3 shows, at least for my data, the downward bias produced by those two omitted variables completely explains the forward-bias puzzle. Covered interest parity also solves three related puzzles." @default.
- W3123020402 created "2021-02-01" @default.
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- W3123020402 date "2010-04-01" @default.
- W3123020402 modified "2023-09-27" @default.
- W3123020402 title "The Solution to the Forward-Bias and Related Puzzles" @default.
- W3123020402 hasPublicationYear "2010" @default.
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