This paper analyses several issues. First, it describes the main features of ERM II and compares them with those of ERM I as it evolved during the 1980s and 1990s. Second, it analyses whether, and under what conditions, ERM II will be more successful than its predecessor in avoiding disruptive...

In a country with high probability of default, higher interest rates may render the currency less attractive if sovereign default is costly. This paper develops that intuition in a simple model and estimates the effect of changes in interest rates on the exchange rate in Brazil using data from...

Purpose – The purpose of this paper is to investigate the impacts of Chinese direct investment in Thailand on the Sino-Thai bilateral trade. The economic relationship between Thailand and China has been strengthened through both trade and Chinese direct investment in Thailand for past decades....

Purpose – The purpose of this paper is to investigate the impact of a menu of country‐pair exchange rate regime combinations upon bilateral foreign direct investment (FDI) flows. Design/methodology/approach – The authors use panel data from 27 OECD and non‐OECD high income countries for...

Reveals that Ireland has experienced six major changes in exchange rate regimes over the period 1797 to today. Provides a historical perspective on this experience. Indicates that Irish nominal variables have been affected by the exchange rate regime and that membership of exchange rate regimes...

Purpose The purpose of this paper is to contribute to the literature on demand-driven Keynesian growth in open economies by developing a formal model that combines Dixon and Thirlwall’s (1975) export-led growth model and Thirlwall’s (1979) balance-of-payments constrained growth model into a...

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...

A simple method to estimate multilateral equilibrium real exchange rates in a cointegration framework is used to compute the equilibrium real exchange rate for the peseta. The stock of foreign assets and the evolution of sectorla prices have been considered to be the fundamentals for the real...

Monetary union in Europe raises the problem of converting into euros nominal historical series calculated in the respective national currencies. The aim of this paper is to evaluate alternative conversion procedures, including use of the rates fixed at the strat of Stage Three between the...