Testing For Real Interest Rate Convergence In European Countries

Stilianos Fountas and Jyh‐lin Wu

Scottish Journal of Political Economy, 1999, vol. 46, issue 2, 158-174

Abstract: We use cointegration tests that determine endogenously the regime shift to test for bilateral short‐term and long‐term real interest rate convergence in the European Monetary System in the 1979–1993 period. The results of these tests provide strong evidence in favour of bilateral real interest rate convergence between Germany and several countries in our sample, particularly for long‐term real interest rates. This result carries the important policy implication that in several European countries monetary policy has lost some of its effectiveness as a stabilisation policy tool.

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (44)

Downloads: (external link)
https://doi.org/10.1111/1467-9485.00126

Related works:
Working Paper: Testing for Real Interest Rate Convergence in European Countries (1998)
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:bla:scotjp:v:46:y:1999:i:2:p:158-174

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0036-9292

Access Statistics for this article

Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith

More articles in Scottish Journal of Political Economy from Scottish Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().