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Currency Markets: Portfolio Inertia vs Expected Returns

Portfolio Inertia vs Expected Returns: Expected excess returns in currency markets can result from portfolio adjustment costs, not just risk premiums, as evidenced in data from nine inflation-targeting economies with floating exchange rates.

Featured in No. 84 on 5 Feb 2025 · 13 days after release

Released
23 Jan 2025
First featured
No. 84 · 5 Feb 2025
Published in
Not yet, as far as Semantic Scholar knows
Shares when featured
15
Identifier
SSRN 5107382

Citations and venue from Semantic Scholar (ODC-BY), refreshed weekly. Summary: Quant Letter (CC BY 4.0).

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