This note quantifies the movements in the distribution of future short-term market interest rates in reaction to the selection of countries that were to participate in stage three of Economic and Monetary Union as of 1 January 1999. We conclude that, before the various national central banks and...

This note focuses on uncovered interest parity (UIP) in the short and medium run using survey-based exchange rate expectations. Analysing the major world currencies over the period 1985-1998 the paper finds that the validity of the UIP relation increases with the term of the investment, thereby...