ABSTRACT
Newsmetrics contains several statements from the monetary and economic policy authorities as well as a vast selection of traders' comments on market events and on the orientation of policy-makers. Newsmetrics gathers data regarding the main events in the American stock market; the strong effect on the exchange rate is documented through the empirical findings of the work. At the base of the entire design of the archive is an experience of foreign exchange markets, strengthened by an extended empirical verification of the explanatory power of the news collected. Exchange rate modelling has developed along two main strands of macroeconomic theory: the Keynesian direction, which finds the Mundell-Fleming exchange rate determination model, and the monetarist direction, which provides the theoretical base for the monetary approach to exchange rate determination. The chapter presents an overview of the key concepts discussed in this book.
