This paper attempts to examine the behaviour of the exchange rate in response to a change in interest rate differential. The empirical results of the study based on mounthly data from Britain, Canada, Germany and Japan provide support for Dornbusch's "overshooting" exchange rate in the short-run. However, in contrast to Dornbusch's proposition, thethe hypothesis of purchasing power parity is not empirically supported and the real exchange rates appeared to be non-stationary in all four cases.
Download Info
To 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.
Publisher Info
Paper provided by New South Wales - School of Economics in its series Papers with number
97/9.
Length: 17 pages Date of creation: 1997 Date of revision: Handle: RePEc:fth:nesowa:97/9
Contact details of provider: Postal: THE UNIVERSITY OF NEW SOUTH WALES, SCHOOL OF ECONOMICS, P.O.B. 1 KENSINGTON, NEW SOUTH WALES 2033 AUSTRALIA. Phone: (+61)-2-9385-3380 Fax: +61)-2- 9313- 6337 Email: Web page: http://www.economics.unsw.edu.au/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Thomas Krichel).