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AspiringRationalist comments on Stupid Questions September 2015 - Less Wrong
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Can you please elaborate on that? Do you mean the prices themselves are not a random walk or do you mean the prices are not a random walk after adjusting for interest rate differences?
And what preconditions don't hold for currency markets?
The currency rates are not a random walk (it's easy to verify that emprirically) either before or after adjusting for the interest rate parity.
What makes currency markets different is that they have huge powerful players -- central banks -- which are not driven by the profit motive.