The Stabilizing Effect of the ERMon Exchange Rates and Interest Rates : An Empirical Investigation /

This paper applies nonparametric test procedures to test for a shift in the volatility of nominal and real exchange rates for ERM members and nonmembers. The results imply a reduction in volatility for the ERM members, especially during the second half of the period of operation of the ERM. We also...

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Detalles Bibliográficos
Autor Principal: Artis, Michael
Outros autores: Taylor, Mark
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 1993.
Series:IMF Working Papers; Working Paper ; No. 1993/067
Acceso en liña:Full text available on IMF
Descripción
Summary:This paper applies nonparametric test procedures to test for a shift in the volatility of nominal and real exchange rates for ERM members and nonmembers. The results imply a reduction in volatility for the ERM members, especially during the second half of the period of operation of the ERM. We also demonstrate that this enhanced stability was not bought at the expense of increased interest rate volatility. The issue of interest rate volatility during sterling's participation in the ERM is also examined.
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Descrición Física:1 online resource (30 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
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