Uncovered Interest Parity Condition between the United States and Europe under Different Exchange Rate Regimes

1993 ◽  
pp. 264-297
Author(s):  
Gebhard Kirchgässner ◽  
Jürgen Wolters
Keyword(s):  
United States ◽  
Exchange Rate ◽  
Exchange Rate Regimes ◽  
The United States ◽  
Uncovered Interest Parity ◽  
Interest Parity ◽  
Parity Condition

scholarly journals Testing the interest-parity condition with Irving Fisher's example of Indian rupee and sterling bonds in the London financial market, 1869–1906

2019 ◽  
Vol 26 (1) ◽  
pp. 21-42 ◽  
Author(s):  
Nils Herger
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Financial Market ◽  
Close Correlation ◽  
Uncovered Interest Parity ◽  
Indian Rupee ◽  
Interest Parity ◽  
Default Risks ◽  
Exchange Rate Changes ◽  
Parity Condition

Following the pioneering work of Irving Fisher, this article assesses the uncovered interest-parity (UIP) condition by comparing Indian interest and exchange rates during the 1869 to 1906 period. The Indian case provides a good example of the UIP condition, since Indian rupee and sterling bonds were simultaneously traded in the London financial market and subject to negligible default risks. Large deviations from the UIP condition arose when India suffered from pervasive levels of uncertainty about the future of its silver-based currency system. Otherwise, a relatively close correlation arises between sterling-to-rupee interest-rate differences and exchange-rate changes.

Monetary interdependence between the United States and United Kingdom under alternative exchange rate regimes

1991 ◽  
Vol 1 (3) ◽  
pp. 175-184 ◽  
Author(s):  
Daniel Wai-Wah Chenung ◽  
Subhash C. Sharma ◽  
Paul B. Trescott
Keyword(s):  
United States ◽  
United Kingdom ◽  
Exchange Rate ◽  
Exchange Rate Regimes ◽  
The United States

Cuba: From “Dollarization” to “Euroization” or “Peso Reconsolidation”?

2002 ◽  
Vol 44 (2) ◽  
pp. 99-123
Author(s):  
Archibald R. M. Ritter ◽  
Nicholas Rowe
Keyword(s):  
United States ◽  
Exchange Rate ◽  
Money Supply ◽  
Economic Structure ◽  
The United States ◽  
Significant Component ◽  
Cuban Government ◽  
The U.S

AbstractSince its “depenalization” in 1993, the U.S. dollar has become possibly a more significant component of Cuba's money supply than the old peso. What are the alternatives? The euro seems inappropriate, given the inevitability of eventual normalization of relations with the United States. More advantageous would be to restore the Cuban peso, though this would involve unifying the bifurcated economic structure and the dual monetary and exchange rate systems. The Cuban government has yet to announce its plans. This study argues that an appropriate mix of exchange rate, monetary, fiscal, and income or wage and salary policies should support a rehabilitation of the Cuban peso.

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