EconPapers    
Economics at your fingertips  
 

The Stabilizing Effect of the ERM on Exchange Rates and Interest Rates: Some Nonparametric Tests

Michael Artis and Mark Taylor

IMF Staff Papers, 1994, vol. 41, issue 1, 123-148

Abstract: This paper uses nonparametric procedures to test for a shift in the volatility of nominal and real exchange rates for members and nonmembers of the ERM. The results imply a reduction in volatility for ERM members, especially during the latter half of its operation. 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 the British pound's participation in the ERM is also examined.

JEL-codes: F31 F42 (search for similar items in EconPapers)
Date: 1994
References: Add references at CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.jstor.org/stable/3867487?origin=pubexport main text (application/pdf)
Access to full text is restricted to subscribers.

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:pal:imfstp:v:41:y:1994:i:1:p:123-148

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2

Access Statistics for this article

More articles in IMF Staff Papers from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-19
Handle: RePEc:pal:imfstp:v:41:y:1994:i:1:p:123-148