Interest Rates in the Nordic Countries: Evidence Based on Devaluation Expectations
AbstractOver the period 1979-92, investments in Danish and Norwegian kroner in the Euromarket have had an annual excess return of about 2 and 1.1 percent, compared to investments in the Euromarket in foreign currencies. Assuming risk neutrality, the subjective probability of a devaluation within the next month is derived from the excess returns on the Euromarket. These derived probabilities are found to be inconsistent with the actual number of devaluations that have taken place over this period, so that the probability of devaluation has been significantly overrated for Denmark and Norway. Copyright 1994 by The editors of the Scandinavian Journal of Economics.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.
Volume (Year): 96 (1994)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Bjørnland, Hilde C. & Hungnes, Håvard, 2003.
"Fundamental determinants of the long run real exchange rate: The case of Norway,"
23/2002, Oslo University, Department of Economics.
- Hilde Christiane Bjørnland & Håvard Hungnes, 2002. "Fundamental determinants of the long run real exchange rate: The case of Norway," Discussion Papers 326, Research Department of Statistics Norway.
- Bjørnland, Hilde C. & Hungnes, Håvard, 2005.
"The commodity currency puzzle,"
32/2005, Oslo University, Department of Economics.
- Steinar Holden & Dag Kolsrud & Birger Vikøren, 1995.
"Noisy signals in target zone regimes Theory and Monte Carlo experiments,"
160, Research Department of Statistics Norway.
- Holden, Steinar & Kolsrud, Dag, 1999. "Noisy signals in target zone regimes:: Theory and Monte Carlo experiments," European Economic Review, Elsevier, vol. 43(8), pages 1531-1567, August.
- Asbjørn Rødseth, 1995. "Limits to Macroeconomic Intervention," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 22, pages 41-48.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.