| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5055622 | Economic Modelling | 2011 | 8 Pages |
Abstract
⺠The UIP-implied long-run relation between European and US bond yields breaks down in the 1990s. ⺠However, trivariate cointegration emerges comprising the interest rates and the exchange rate. ⺠The additional common stochastic trend can be explained by central bank reactions. ⺠Unfinished learning with regard to the strength of the euro provides a second rationale. ⺠US capital market dominance is strikingly reduced.
Related Topics
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Economics and Econometrics
Authors
Enzo Weber,