IDEAS home Printed from https://ideas.repec.org/p/ags/motuwp/292618.html
   My bibliography  Save this paper

Uncovering uncovered interest parity during the classical gold standard era, 1888-1905

Author

Listed:
  • Coleman, Andrew

Abstract

This paper examines the uncovered interest parity hypothesis using the dollar-sterling exchange rate during the gold standard era. This period is interesting because the exchange rate was seasonal, because transactions costs were high, and because occasions when uncovered interest rate speculation did not occur can be identified. The paper shows UIP speculation frequently did not occur, that speculation occurred more in response to expected exchange rate changes than interest rate differentials, and that profitability varied systematically with interest rate differentials. The estimated UIP equations are substantially improved by distinguishing occasions when sterling was borrowed not lent.

Suggested Citation

  • Coleman, Andrew, 2010. "Uncovering uncovered interest parity during the classical gold standard era, 1888-1905," Motu Working Papers 292618, Motu Economic and Public Policy Research.
    • Handle: RePEc:ags:motuwp:292618
    DOI: 10.22004/ag.econ.292618
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/292618/files/10_02.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.292618?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:motuwp:292618. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/motuenz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.