OVERSHOOTING
A phenomenon in economics used to explain why exchange rates are more volatile than would be expected. Some economists had argued that volatility was purely the result of speculators and inefficiencies in the foreign exchange market. However, the overshooting model argues that the foreign exchange rate will temporarily overreact to changes in monetary policy to compensate for sticky prices in the economy. Thus, there will be more volatility in the exchange rate due to overshooting and subsequent corrections that would otherwise be expected.
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Premium
The total cost of an option.
The difference between the higher price paid for a fixed-income secur ...
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ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 07:00 | Leading Indicators | Aug | |
| 11:00 | Ifo Business Climate Index | Oct | |
| 11:00 | Ifo Current Assessment | Oct | |
| 11:00 | IFO - Expectations | Oct | |
| 13:00 | CBI retail sales volume balance | Oct | |
| 01:50 | Corporate Service Price Index | Sep | |
| 02:01 | BRC Shop Price Index | Oct | |
| 07:00 | BOJ Core CPI | Sep | |
| 10:00 | Unemployment Rate | 3 quarter |
