Flood, Robert P; Rose, Andrew K - C.E.P.R. Discussion Papers - 1994
Regressions of ex-post changes in floating exchange rates on appropriate interest differentials typically imply that … the high interest rate currency tends to appreciate - the `forward discount puzzle'. Using data from the European Monetary …, deviations from uncovered interest parity appear to vary in a way that is dependent upon the exchange rate regime. By using the …