This work seeks to analyze the stability of the exchange rate between the Irish and Sterling pounds. Towards this end, we work on a procedure, previously suggested by Haldane & Hall (1991), based on a regression with changing parameters and propose a statistical test of the null hypothesis of...

Monetary union in Europe raises the problem of converting into euros nominal historical series calculated in the respective national currencies. The aim of this paper is to evaluate alternative conversion procedures, including use of the rates fixed at the strat of Stage Three between the...

This article intends to study the potential benefit of moving from a flexible exchange rate regime to a monetary union. To this end, we develop a two countries intertemporal general equilibrium model. We extend the Obstfeld and Rogoff [1995a] specification by introducing both physical capital...

Exchange rate variability is a central theme in the debate on the performance of exchange rate regimes. The consequences of this variability for economic activities have always been a major concern of policy makers. The present study focuses on international trade. The aim is to construct a...

The crisis of the European exchange-rate system (ERM) in 1992093 was a critical event in the post- Bretton Woods history of the international monetary system. A full understanding of the causes, origins, and implications of the ERM breakdown can privide policy lessons that are particularly...

Monetary union in Europe raises the problem of converting into euros nominal historical series calculated in the respective national currencies. The aim of this paper is to evaluate alternative conversion procedures, including use of the rates fixed at the start of Stage Three between the...

Which exchange rate arrangement should developing countries adopt? This question has been given new urgency by the 1997-98 Asian crisis, with its offshoots in Eastern Europe and Latin America. Adjustable or crawling pegs were in place in almost every coun

The process of economic integration has made considerable progress during the 1990s in the European Union (EU). Firstly, with the establishment of a single market in 1993 and now, within a relatively short period of time, the most significant yet, the movement towards a single currency for...