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- W2726114581 abstract "The paper presents estimates of devaluation expectations for six ERM currencies relative to the Deutsche mark, for the period March 1979-April 1992. Both the ‘simplest test’ and the ‘drift adjustment’ method are used. The simplest test adjusts interest rate differentials for the maximum and minimum expected rate of depreciation within the exchange rate band; the driftadjustment method adjusts interest rate differentials by the estimated expected rate of depreciation within the band. The latter method gives more precise estimates, especially for short horizons, and allows statistical inference and hypothesis testing. Expected rates of devaluation have generally fallen during the period. Still, some devaluation expectations relative to the Deutsche mark remain in 1992, except for the BeI~an/Luxembourg franc and the Netherlands guilder. Expected rates of devaluation have fluctuated more than interest rate differentials." @default.
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- W2726114581 date "1991-10-01" @default.
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- W2726114581 title "Assessing Target Zone Credibility" @default.
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- W2726114581 doi "https://doi.org/10.5089/9781451949964.001.a001" @default.
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