Authors: Christopher Dylan McGee
Addresses: Department of Economics and Global Studies, Assumption College, 500 Salisbury St, Worcester MA 01609, USA
Abstract: The article presents a long-term macro-model of the US trade balance that allows for agents with rational expectations to learn about the key parameters affecting the currency forecast. This allows for a dynamic that is a plausible middle-ground between the standard alternatives of either perfect information or investor myopia.
Keywords: Bayesian learning; current account; macromodelling; US trade balance; USA; United States; currency forecast.
International Journal of Economics and Business Research, 2009 Vol.1 No.3, pp.333 - 346
Available online: 31 Mar 2009 *Full-text access for editors Access for subscribers Purchase this article Comment on this article