ASIAN EXCHANGE-RATE EXPECTATIONS

This paper considers a new survey data set of expectations on Asian currencies. Our evidence indicates that variation in the forward discount is accounted for by variation in the risk premium, as well as irrationality on the part of market participants. In addition, we find some evidence that exchange rate expectations are not consistent across the maturity spectrum. J. Japan. Int. Econ., March 1993, 7(1), pp. 57-77. City University Business School, London, United Kingdom; and University of Limburg, Maastricht 6200 MD, The Netherlands. © 1993 Academic Press, Inc.