The article treats the history of Germany's Great Inflation from 1914 to 1923. It focusses on explaining the turning points of wholesale price trends. It demonstrates that these were mostly triggered by national and international political decisions immediately impacting the mark exchange rate....

Keynesian-inspired macro regulation gained importance in West German economic policy from the mid-1960s and was enshrined in law through the Stability and Growth Act in 1967. In the context of the legislative process, the question arose as to what extent the Deutsche Bundesbank should be given...

This article analyses the Bank of England's (BoE) involvement in UK policy towards the European Monetary System (EMS) between 1979 and 1990. It outlines how scepticism about rigid monetarist approaches influenced the institution's stance towards the EMS. Despite internal disagreements, the BoE...

Using two examples we have shown that large fluctuations in real exchange rates cannot normally be attributed to "overshooting" in the Dornbusch sense. We proposed to use the interest differential between to countries as a direct and reliable measure of the extend of overshooting. Observing that...

A practice that has become widespread and widely endorsed is that of evaluating forecasts of financial variability obtained from discrete time models by comparing them with high-frequency ex post estimates (e.g. realised volatility) based on continuous time theory. In explanatory financial...

The paper estimates i) the degree of currency undervaluation and its relationship with per capita income (convergence), as informed by the Harrod-Balassa-Samuelson (HBS) framework. ii) The role of the real effective exchange rate, both its level and its stability over time, for underpinning...

Die künftige Entwicklung der Wechselkurse ist für viele wirtschaftliche Entscheidungen von besonderer Bedeutung. Gerade die jüngste Aufwertung des Euro gegenüber dem US-Dollar hat deutlich vor Augen geführt, wie negativ sich unerwartete Wechselkursänderungen auswirken können. Um Risiken...