New-Keynesian models are characterized by the presence of expectations as explanatory variables. To use these models for policy evaluation, the econometrician must estimate the parameters of expectation terms. Standard estimation methods have several drawbacks, including possible lack of...

We use non-stationary econometrics to analyze asymmetry and dominance within the EMS through interest rate linkages from April 1983 to the end of 1992. Daily data (French, German and US one-month Eurorates) are used for their better suitability to the analysis of causality. We first show there...