haku: @author Lund, J. / yhteensä: 5
viite: 3 / 5
| Tekijä: | Lund, J. |
| Otsikko: | A model for studying the effect of EMU on European Yield Curves |
| Lehti: | European Finance Review
1998 : VOL. 2:3, p. 321-363 |
| Asiasana: | FINANCE EUROPE ECONOMICS |
| Kieli: | eng |
| Tiivistelmä: | In January 1999, the European Monetary Union (EMU) was formally launched with 11 member countries. However, before May 1998 there was considerable uncertainty about who would join EMU, and whether the project would start on time. When a monetary union is formed, exchange rates between the member countries are irrevocably fixed, and yield spreads stemming from exchange-rate risk are eliminated. As a direct consequence, EMU affected the prices of long-term monetary union. The author addresses these issues and develops a bond-pricing model which explicitly takes into account that a country may join a monetary union at a future, unspecified date. |
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