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overshooting

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The answer OVERSHOOTING has 0 possible clue(s) in existing crosswords.

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Definitions of overshooting in various dictionaries:

verb - shoot beyond or over (a target)

verb - aim too high

OVERSHOOTING - The overshooting model, or the exchange rate overshooting hypothesis, first developed by economist Rudi Dornbusch, is a theoretical explanation for h...

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Possible Dictionary Clues
Present participle of overshoot.
go past (an intended stopping or turning point) inadvertently.
Overshooting description
The overshooting model, or the exchange rate overshooting hypothesis, first developed by economist Rudi Dornbusch, is a theoretical explanation for high levels of exchange rate volatility. The key features of the model include the assumptions that goods' prices are sticky, or slow to change, in the short run, but the prices of currencies are flexible, that arbitrage in asset markets holds, via the uncovered interest parity equation, and that expectations of exchange rate changes are "consistent": that is, rational. The most important insight of the model is that adjustment lags in some parts of the economy can induce compensating volatility in others; specifically, when an exogenous variable changes, the short-term effect on the exchange rate can be greater than the long-run effect, so in the short term, the exchange rate overshoots its new equilibrium long-term value.
* Dornbusch developed this model back when many economists held the view that ideal markets should reach equilibrium an
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