Agents’ Rationality and the CHF/USD Exchange Rate
Part III
Fachartikel 342
Fachbereich
Volkswirtschaftslehre
Volkswirtschaftslehre
Fachrichtung
Empirische Wirtschaftsforschung
Empirische Wirtschaftsforschung
Working Paper
2005
2005
Sprache
englisch
englisch
Beschreibung
Economic theories tend to interpret agents’ rationality as some kind of mechanical process representing an ”as if” mechanism often using utility functions. By way of contrast the author analyzes agents’ rationality (at foreign exchange markets), bringing cognitive processes and social practices into the picture.
The paper revises a theoretical model by B.T. McCallum [?] discussed earlier, incorporating new aspects of agents’ rationality as introduced in this paper and the previous parts. As we still discover some shortcomings of the revised model, an additional specification analysis will be undertaken in a fourth paper.