IMF Staff Papers, Volume 51, No. 3.

This paper tests uncovered interest parity (UIP) using interest rates on longer maturity bonds for the Group of Seven countries. These long-horizon regressions yield much more support for UIP-all of the coefficients on interest differentials are of the correct sign, and almost all are closer to the...

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Bibliographic Details
Corporate Author: International Monetary Fund. Research Dept
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2004.
Series:IMF Staff Papers; IMF Staff Papers ; No. 2004/003
Online Access:Full text available on IMF
Description
Summary:This paper tests uncovered interest parity (UIP) using interest rates on longer maturity bonds for the Group of Seven countries. These long-horizon regressions yield much more support for UIP-all of the coefficients on interest differentials are of the correct sign, and almost all are closer to the UIP value of unity than to zero. The paper also analyzes the decision by a government facing electoral uncertainty to implement structural reforms in the presence of fiscal restraints similar to the Stability and Growth Pact.
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Physical Description:1 online resource (216 pages)
Format:Mode of access: Internet
ISSN:1020-7635
Access:Electronic access restricted to authorized BRAC University faculty, staff and students