Discover how exchange rates influence the economy, affecting job markets, inflation, and costs of goods. Learn about their ...

This paper addresses a key puzzle in international finance: whether exchange rates follow a random walk or exhibit predictable patterns. We demonstrate that exchange rates can possess a unit root ...

Foreign exchange is the largest and most liquid financial market, with nearly $10 trillion changing hands daily. It’s the underpinning for global trade and finance—and its structure is changing as ...