In this paper we examine the stability of the real exchange rate and the macroeconomic effects of alternative exchange-rate regimes, including currency union, on real exchange-rate behaviour. We focus on the Irish punt in order to exploit its diversity of experience over different nominal...

This chapter uses very long time series of historical data to investigate the cross-country convergence of real and nominal short-term and long-term interest rates across exchange-rate regimes. Consistent with theory, the behavior of nominal interest rates varies considerably across regimes,...