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Five Weeks in the Life of the Pound. Interest Rates, Expectations and Sterling's Exit from the ERM

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Author Info
Robertson, D
Symons, J
Abstract

Yields to maturity of a set of nominal and index linked gilts are used to obtain estimates of the term structures of nominal and real interest rates. These also allow calculation of expected inflation. The estimation is performed for a period of five weeks including the date of sterling's exit from the ERM. The authors look at the macroeconomic consequences of the shift in the exchange rate regime as implied by the behavior of financial markets and how those markets incorporate new information. Copyright 1994 by Blackwell Publishing Ltd

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Publisher Info
Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 56 (1994)
Issue (Month): 1 (February)
Pages: 1-12
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Handle: RePEc:bla:obuest:v:56:y:1994:i:1:p:1-12

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0305-9049

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  1. Jagjit S. Chadha & Peter Macmillan & Charles Nolan, 2006. " Independence Day for the “Old Lady”: A Natural Experiment on the Implications of Central Bank Independence," CDMA Working Paper Series 0602, Centre for Dynamic Macroeconomic Analysis. [Downloadable!]
    Other versions:
  2. D Robertson & J Symons, 1993. "Real Interest Rates and Index Linked Gilts," CEP Discussion Papers 0181, Centre for Economic Performance, LSE. [Downloadable!]
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