Using Survey Expectations in FX Analyses

At the NBER IFM Summer Institute session on exchange rates yesterday, the debate over the use of survey data rekindled. In Exchange Rate and Interest Rate Disconnect, Şebnem Kalemli-Özcan and Liliana Varela used survey data on exchange rate depreciation. The discussant Adrian Verdelhan (MIT) and audience members questioned whether such data actually measured what we thought they measured market expectations.

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