Open AccessModeling Exchange Rates With Neural Networks
Author(s) -
A. M. M. Jamal,
Cuddalore Sundar
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v14i1.5723
Subject(s) - artificial neural network , econometrics , econometric model , computer science , term (time) , span (engineering) , economics , artificial intelligence , engineering , physics , quantum mechanics , civil engineering
This paper applies the neural network model to forecast bilateral exchange rates between the U.S. and Germany and U.S. and France. The predictions from the neural network model were compared to those based on a standard econometric model. The results suggest that the neural network model may have some advantages when frequent short term forecasts are needed.