کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
964184 | 930487 | 2009 | 13 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: Exchange rate regimes and prices: The cases of Italy, Spain and the United Kingdom (1874–1998) Exchange rate regimes and prices: The cases of Italy, Spain and the United Kingdom (1874–1998)](/preview/png/964184.png)
This paper studies the relationship among Italian, Spanish and United Kingdom prices over the period 1874–1998, for most of which the currencies of these three countries maintained a floating exchange rate regime. By using cointegration techniques with broken linear trends, we find a single vector for the period 1874–1935 and two vectors and, consequently, a single common trend for the period 1940–1998. Therefore, this paper provides new evidence of no long-run monetary independence under floating regimes. Furthermore, the price differential dynamics captured by deterministic trends in the period 1940–1998, as well as agreeing with the evidence of long-run transmission of interest rates in the floating post-Bretton Woods era, fit in perfectly with the new de facto taxonomies on exchange rates.
Journal: Journal of International Financial Markets, Institutions and Money - Volume 19, Issue 3, July 2009, Pages 477–489