An Empirical Exploration of Exchange Rate Target-Zones /

In the context of a flexible-price monetary exchange rate model and the assumption of uncovered interest parity, we obtain a measure of the fundamental determinant of exchange rates. Daily data for the European Monetary System are used to explore the importance of nonlinearities in the relationship...

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Bibliografski detalji
Glavni autor: Mathieson, Donald
Daljnji autori: Flood, Robert, Rose, Andrew
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 1991.
Serija:IMF Working Papers; Working Paper ; No. 1991/015
Online pristup:Full text available on IMF
Opis
Sažetak:In the context of a flexible-price monetary exchange rate model and the assumption of uncovered interest parity, we obtain a measure of the fundamental determinant of exchange rates. Daily data for the European Monetary System are used to explore the importance of nonlinearities in the relationship between the exchange rates and fundamentals. Many implications of existing 'target-zone' exchange rate models are tested; little support is found for existing nonlinear models of limited exchange rate flexibility.
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Opis:1 online resource (73 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Pristup:Electronic access restricted to authorized BRAC University faculty, staff and students