An empirical examination of exchange-rate credibility determinants in the EMS
This study provides empirical evidence on the determinants of exchange rate credibility under the European Monetary System (EMS). To that end, it considers both economic variables and political factors using data of eight currencies participating in the Exchange Rate Mechanism, covering the complete EMS history (1979 to 1998). The results suggest that the level of international reserves, the real interest rate and right-wing governments would have positively affected the credibility of a given central parity, while the unemployment rate and the inflation rate would have negatively influenced such credibility.
Year of publication: |
2006
|
---|---|
Authors: | Ledesma-Rodriguez, Francisco ; Perez-Rodriguez, Jorge ; Sosvilla-Rivero, Simon |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 13.2006, 13, p. 847-850
|
Publisher: |
Taylor & Francis Journals |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Implicit bands in the yen/dollar exchange rate
Ledesma-Rodriguez, Francisco, (2011)
-
Assessing the credibility of a target zone: evidence from the EMS
Ledesma-Rodriguez, Francisco, (2005)
-
Implicit bands in the Spanish peseta/Deutschmark exchange rate, 1965-1998
Ledesma-Rodriguez, Francisco, (2007)
- More ...