Presented by John T. Harvey in Currencies, Capital Flows and Crises: A post Keynesian analysis of exchange rate determination this simple model covers pretty much all there is to know about fundamental analysis in foreign exchange markets. It lacks any real computational power, sure, but that’s not its main purpose. The purpose of this model is to showcase the main elements found behind foreign exchange price action and the relationship between these elements. I’m sure way too many retail traders have no idea about these mechanisms (just like I didn’t know anything about them a couple of years ago when I was still starting out and was thinking that there’s so much predictive power behind the MACD indicator that I’ll never need anything else to get rich) and I’m sure learning about them would help many. I’d present more about it but I suggest you go check out the book.