AN EMPIRICAL EXAMINATION OF EXCHANGE RATE STABILITY: CASE STUDY: EUROPEAN MONETARY SYSTEM
Swarna D. Dutt
(Assistant Professor, Department of Economics, School of Business, West Georgia College, Carrollton, GA 30118.)
Dipak Ghosh
(Visiting Assistant Professor, Tulane University, New Orleans, LA 70118.)
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Abstract
We examine the stability of exchange rates among the members of the European Monetary System (EMS), using the Johansen‐Juselius multivariate cointegration (systems) analysis. The direct implication from cointegration theory is that exchange rate stability vis a vis EMS member countries has been achieved. This allows us to study the speed of convergence of different currencies towards the equilibrium path.
Citation
Dutt, S.D. and Ghosh, D. (1995), "AN EMPIRICAL EXAMINATION OF EXCHANGE RATE STABILITY: CASE STUDY: EUROPEAN MONETARY SYSTEM", Studies in Economics and Finance, Vol. 16 No. 1, pp. 64-84. https://doi.org/10.1108/eb028718
Publisher
:MCB UP Ltd
Copyright © 1995, MCB UP Limited