‘Nothing to fear but FEER itself’: CEPR paper
Conditional trading strategies that fully understand the fundamental equilibrium exchange rate (FEER) can deliver positive returns with high Sharpe ratios and zero to mildly positive skewness, argues research published by the Centre for Economic Policy Research (CEPR) in late November.
The paper, entitled ‘The carry trade and fundamentals: nothing to fear but FEER itself', discovers more refined strategies then the kind which resulted in steep losses over the last few years, arguing that these
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