Exchange rates expectations and chaotic dynamics: a replication study

In this paper the author analyzes the behavior of exchange rates expectations for four currencies, by considering a re-calculation and an extension of Resende and Zeidan (Expectations and chaotic dynamics: empirical evidence on exchange rates, Economics Letters, 2008). Considering Lyapunov exponent-based tests results, they are not sup-portive of chaos in exchange rates expectations, although the so-called 0−1 test strongly supports the chaos hypothesis.