This paper examines the dynamic interactions between mutual fund flows and security returns in an emerging capital market, namely the Greek one. It adopts a testing strategy not requiring pre-testing (which might generate severe biases) but simply augmenting the system (Toda and Yamamoto, 1995,...

This paper develops a theoretical framework which allows for both domestic and external factors in the determination of interest rates. We argue that if capital controls are imposed, or if the risk premium is a function of disequilibria in the money market, domestic factors should also play a...

The paper tests the unbiasedness of interest differentials and term structure as predictors of inflation differentials and inflation changes, respectively, using three-, six- and twelve-month maturities in eight major industrial countries over the period 1981-1992. The first hypothesis requires...