Forecasting the USD/COP Exchange Rate: A Random Walk with a Variable Drift

Número: 
253
Publicado: 
Clasificación JEL: 
C33, F21, F34
Palabras clave: 
Exchange Rate

This study develops three exchange rate models as well as a simple statistical model defined as a random walk with a variable drift. The exchange rate models all use the purchasing power parity hypothesis to account for the long-term relationships between