Price-Based Measurement Of Financial Globalization: A Cross-Country Study Of Interest Rate Parity
Abstract
We characterize the relationship between ex post exchange rate depreciation and the interest differential for both developed and emerging market economies. The measured ex post uncovered interest differentials in terms of both levels and absolute values are then related to a set of variables that capture macroeconomic and policy conditions. We find that a wide diversity in the coefficient relating depreciations and interest differentials can be attributed to differences in inflation volatility, financial development, capital account openness, legal development and the nature of the exchange rate regimes. The robust results are mainly found in the emerging market country grouping. Copyright 2007 The Authors Journal compilation 2007 Blackwell Publishing LtdDownload Info
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Bibliographic Info
Article provided by Wiley Blackwell in its journal Pacific Economic Review.
Volume (Year): 12 (2007)
Issue (Month): 4 (October)
Pages: 419-444
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1361-374X
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Gurnain Kaur Pasricha, 2009.
"Bank Competition and International Financial Integration: Evidence using a new index,"
FIW Working Paper series
037, FIW.
- Gurnain Kaur Pasricha, 2010. "Bank Competition and International Financial Integration: Evidence Using a New Index," Working Papers 10-35, Bank of Canada.
- Pasricha, Gurnain, 2009. "Bank Competition and International Financial Integration: Evidence using a new Index," MPRA Paper 16767, University Library of Munich, Germany.
- Gurnain Kaur Pasricha, 2009. "Bank Competition and International Financial Integration:Evidence Using a New Index," Working Papers 242009, Hong Kong Institute for Monetary Research.
- Maurice J. Roche & Michael J. Moore, 2010. "For Rich or for Poor: When does Uncovered Interest Parity Hold?," Working Papers 015, Ryerson University, Department of Economics.
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