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Forward rates as predictors of future spot rates in small open economies: The case of Kuwait

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  • John Pippenger

Abstract

The relationship between forward and future spot rates appears to be the same for Kuwait as for larger developed countries. Bid-ask spreads do not appear to affect the relationship. But cointegration, unit root and frequency domain tests suggest that there may be a stronger long-run than short-run relationship. Copyright Kluwer Academic Publishers 1991

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  • John Pippenger, 1991. "Forward rates as predictors of future spot rates in small open economies: The case of Kuwait," Open Economies Review, Springer, vol. 2(2), pages 183-201, June.
    • Handle: RePEc:kap:openec:v:2:y:1991:i:2:p:183-201
    DOI: 10.1007/BF01886899
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    References listed on IDEAS

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