Additional Evidenceon Ems Interest Rate Linkages /

This note examines interest rate linkages within the EMS. Cointegration tests suggest the existence of a long-run equilibrium relationship between German and other EMS interest rates. Bivariate VAR analysis finds that Granger-causality either stems from German to other European interest rates (Belgi...

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Bibliografiske detaljer
Hovedforfatter: Thornton, John
Andre forfattere: Garcia-Herrero, Alicia
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 1996.
Serier:IMF Working Papers; Working Paper ; No. 1996/115
Fag:
Online adgang:Full text available on IMF
Beskrivelse
Summary:This note examines interest rate linkages within the EMS. Cointegration tests suggest the existence of a long-run equilibrium relationship between German and other EMS interest rates. Bivariate VAR analysis finds that Granger-causality either stems from German to other European interest rates (Belgium, France, Spain, and the U.K.) or is bidirectional (Denmark and the Netherlands). When allowance is made for the influence of U.S. interest rates, the pattern of Granger causality is predominantly bidirectional.
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Fysisk beskrivelse:1 online resource (16 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Adgang:Electronic access restricted to authorized BRAC University faculty, staff and students