IMF Staff Papers, Volume 51, No. 3

Author/Editor:

International Monetary Fund. Research Dept.

Publication Date:

November 23, 2004

Electronic Access:

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Summary:

This paper tests uncovered interest parity (UIP) using interest rates on longer maturity bonds for the Group of Seven countries. These long-horizon regressions yield much more support for UIP—all of the coefficients on interest differentials are of the correct sign, and almost all are closer to the UIP value of unity than to zero. The paper also analyzes the decision by a government facing electoral uncertainty to implement structural reforms in the presence of fiscal restraints similar to the Stability and Growth Pact.

Series:

IMF Staff Papers, Volume 51, No. 3

Subject:

Notes:

Issues from 1998 onward are available for free online

English

Publication Date:

November 23, 2004

ISBN/ISSN:

9781589063518/1020-7635

Stock No:

SPIEA2004003

Price:

$25.00 (Academic Rate:$25.00)

Format:

Paper

Pages:

216

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