This essay makes the assumption that the euro is coming and seeks to understand the implications of its arrival for the US dolar. In particular, it investigates the motives for, and implications of, shifts of funds by international portfolio managers in response to the euro's introduction.

Which exchange rate arrangement should developing countries adopt? This question has been given new urgency by the 1997-98 Asian crisis, with its offshoots in Eastern Europe and Latin America. Adjustable or crawling pegs were in place in almost every coun

This essay is based on the 1997-98 Frank D. Graham Memorial Lecture, which I had the honor of presenting at Princeton University on April 9, 1998. Frank Graham was deeply concerned with the interplay among national policy sovereignty, exchange-rate regimes, and price-level stability. Today, the...

Exchange rate variability is a central theme in the debate on the performance of exchange rate regimes. The consequences of this variability for economic activities have always been a major concern of policy makers. The present study focuses on international trade. The aim is to construct a...

The crisis of the European exchange-rate system (ERM) in 1992093 was a critical event in the post- Bretton Woods history of the international monetary system. A full understanding of the causes, origins, and implications of the ERM breakdown can privide policy lessons that are particularly...

This work seeks to analyze the stability of the exchange rate between the Irish and Sterling pounds. Towards this end, we work on a procedure, previously suggested by Haldane & Hall (1991), based on a regression with changing parameters and propose a statistical test of the null hypothesis of...