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Volatility and misalignments of EMS and other currencies during 1974–1998

European Monetary Union and Capital Markets

ISBN: 978-0-76230-830-9, eISBN: 978-1-84950-128-6

Publication date: 13 December 2001

Abstract

This paper distinguishes exchange rate variability from exchange rate misalignments and presents statistical measures in this regard. It uses PPP as a crude approximation of equilibrium exchange rates and shows that during periods of possible misalignments, the exchange rate variability of some EMS and other currencies tends to increase.

Citation

Papaioannou, M.G. (2001), "Volatility and misalignments of EMS and other currencies during 1974–1998", European Monetary Union and Capital Markets (International Finance Review, Vol. 2), Emerald Group Publishing Limited, Leeds, pp. 51-96. https://doi.org/10.1016/S1569-3767(01)02005-2

Publisher

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Emerald Group Publishing Limited

Copyright © 2001, Emerald Group Publishing Limited