Revisiting the Forward Premium Anomaly Using Consumption Habits: A New Keynesian Model

This paper revisits the ability of consumption habits to resolve the forward premium anomaly as documented in the literature. We show that the favourable results obtained in an endowment setting crucially depend on having persistent dynamics in excess consumption, and do not appear to hold up in a p...

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Veröffentlicht in:	Economica (London) 2017-07, Vol.84 (335), p.516-540
Hauptverfasser:	De Paoli, Bianca, Søndergaard, Jens
Format:	Artikel
Sprache:	eng
Schlagworte:	Consumption Economic models Foreign exchange Habits Keynesian theory Production consumption relationship
Online-Zugang:	Volltext
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