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

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

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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