haku: @author Gerlach, S. / yhteensä: 11
viite: 9 / 11
| Tekijä: | Burda, M. Gerlach, S. |
| Otsikko: | Exchange rate dynamics and currency unification: the Ostmark - DM rate |
| Lehti: | Empirical Economics
1993 : VOL. 18:3, p. 417-429 |
| Asiasana: | EXCHANGE RATES CURRENCY DEUTSCHMARKS |
| Kieli: | eng |
| Tiivistelmä: | This paper estimates a simple model of the exchange rate between the East and West German Mark immediately preceding German monetary union. Although there is a theoretical literature on exchange rate dynamics when the introduction of a fixed exchange rate is anticipated, the absence of data has limited empirical work on the subject. The authors show that in the first part of the sample, the DM-Ostmark exchange rate behaves as a random walk. In the second half, when monetary unions appeared more likely, the exchange rate behaves as a weighted average of fundamentals and the expected "terminal" exchange rate. |
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