Fountas, Stilianos; Wu, Jyh-lin - In: Scottish Journal of Political Economy 46 (1999) 2, pp. 158-74
The authors use cointegration tests that determine endogenously the regime shift to test for bilateral short-term and long-term real interest rate convergence in the European Monetary System in the 1979-93 period. The results of these tests provide strong evidence in favor of bilateral real...