The present paper focuses on the assessment of devaluation expectations in Greek forward exchange market during the turbulent year 1992. We describe the institutional changes underwent in the Greek forward exchange market in its transition from capital controls to a liberalized regime during the...

Empirical tests typically provide evidence that the British pound-US dollar exchange rate and the relative wholesale price index contain exact unit roots and exhibit cointegration. However, the cointegrating vector is significantly different from [1, - 1], thus raising doubts on the validity of...