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Some forecasters believe that foreign exchange markets for the major floating currencies are efficient and forward exchange rates are unbiased predictors of future spot exchange

Some forecasters believe that foreign exchange markets for the major floating currencies are "efficient" and forward exchange rates are unbiased predictors of future spot exchange rates. What are the conditions of market efficiency and what is implied by the term unbiased predictors? What does the empirical evidence have to say about the forward rate as an unbiased predictor of future spot rates?

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