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The classical theory about foreign exchange rate explains its fluctuations as the resulting of a random walk motion. In … this paper, such a theory is put into question by performing Brock, Dechert and Scheinkman's (1987) test on the Austrian …
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After the breakdown of the Bretton Woods system, Austria adhered to an exchange rate policy of adjustably pegging the … to considerations of an optimum currency area comprising Germany and Austria. In the paper it is shown that (i) the … remarkable real wage flexibility in Austria, and (iii) a currency union with Germany was harmful to real sector developments in …
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