Excess Returns on Irish Pound Assets in the EMS

Patrick Honohan and Charles Conroy

No WP047, Papers from Economic and Social Research Institute (ESRI)

Abstract: This paper examines the relation between Irish and foreign short-term interest rates from the perspective of the expectations approach to understanding interest rate determination. In particular it addresses the question of whether Irish money market interest rates have been in some sense ? too high? during the EMS period. This answer depends on whether the comparison is made with German or UK interest rates. Appealing to recent developments in the theory of international interest rate linkages, we argue that German rates are the more relevant comparator. It follows that Irish money market interest rates appear to have been ?too high? on average.

Pages: 10 pages
Date: 1994-03
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.esri.ie/pubs/WP047.pdf First version, 1994 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:esr:wpaper:wp047

Access Statistics for this paper

More papers in Papers from Economic and Social Research Institute (ESRI) Contact information at EDIRC.
Bibliographic data for series maintained by Sarah Burns ().