ASYMMETRY IN THE ERM - A CASE-STUDY OF FRENCH AND GERMAN INTEREST-RATES BEFORE AND AFTER GERMAN UNIFICATION

Authors
GARDNER EH PERRAUDIN WRM
Citation
Eh. Gardner et Wrm. Perraudin, ASYMMETRY IN THE ERM - A CASE-STUDY OF FRENCH AND GERMAN INTEREST-RATES BEFORE AND AFTER GERMAN UNIFICATION, Staff papers - International Monetary Fund, 40(2), 1993, pp. 427-450
Citations number
25
Categorie Soggetti
Economics,"Business Finance
Journal title
Staff papers - International Monetary Fund → ACNP
ISSN journal
00208027
Volume
40
Issue
2
Year of publication
1993
Pages
427 - 450
Database
ISI
SICI code
0020-8027(1993)40:2<427:AITE-A>2.0.ZU;2-7
Abstract
Daily French and German interest rate changes since the Basle-Nyborg a greement of September 1987 are examined empirically. In particular, it is asked whether the shock associated with German unification altered the degree of leadership of German monetary policy in the exchange ra te mechanism (ERM). The paper finds that Germany's leadership role wit hin the ERM largely disappeared in the year following unification but that the Bundesbank began reasserting its predominance thereafter. [JE L E43, E52, E58, F31, F33, F36]