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Exchange rate overshooting |
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Exchange rate overshootingThe response of an exchange rate to a shock by first moving beyond where it will ultimately settle. Thought to help explain exchange rate volatility, this was first modeled by Dornbusch (1976).Similar MatchesOvershootingOvershootingThe tendency of a pool of MBS to reflect an especially high rate of prepayments the first time it crosses the threshold for refinancing, specially if two or more years have passed since the date of issue without the weighted average coupon of the pool crossing the refinancing threshold. OvershootingOvershootingSee exchange rate overshooting. |
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