Introduction

Abstract

After discussing several aspects of coordinated behavior on foreign exchange markets on a theoretical level, the relevant question to be asked is whether the theoretical results can be tested and if so, whether the tests will corrob-orate or negate the models’ findings. In this respect, apart from the various aspects that might require verification, we also have to take into account the different methods on how to do this. Whereas results from game-theory are usually tested by conducting experiments in laboratory situations, evidence for macroeconomic issues is most often found through econometric testing on empirical data. Since the topic of this book is concerned with game-theoretic predictions in a macroeconomic setting, the problem of finding an appropriate testing procedure is therefore quite momentous.