This paper aims to survey the recent literature on the theoretical models of the exchange rate determination and to present a detailed literature review on the empirical findings for the exchange rate predictability. In this study, starting from the early Classical and the Keynesian models, we briefly overview the fundamental approaches in general and to explain the literature on the exchange rate markets in developed economies in particular. In this context, we observe that the related topic is empirically analyzed via various econometric and statistical techniques. There are also various empirical findings, which are different from each other. This paper avails to researchers, who are interested in the related subjects in international economics and international finance.
Key words: Exchange Rate Determination; Literature Review; Developed Countries; Performance Analysis; General Equilibrium Models. JEL Classification: F31, F39. Article Language: EnglishTurkish
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