01774cas a2200253 a 4500 AALejournalIMF000939 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451850345 1018-5941 BD-DhAAL BD-DhAAL Knot, Klaas. Co-Movements in Long-Term Interest Rates and the Role of PPP-Based Exchange Rate Expectations / Klaas Knot, Jan Berk. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates international co-movement in bond yields by testing for uncovered interest parity (UIP). Existing work is supplemented by focusing on long instead of short-term interest rates and by employing exchange rate expectations derived from purchasing power parity (PPP) instead of actual outcomes. Among the major currencies during 1975-97, the paper does not find a further increase in co-movement beyond that associated with the wave of financial market liberalization in the early 1980s. Given the similarity between PPP-based UIP tests and those employing actual exchange rate outcomes, the value added of the former lies mainly with data availability. Mode of access: Internet Berk, Jan. IMF Working Papers; Working Paper ; No. 1999/081 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/081/001.1999.issue-081-en.xml IMF e-Library