Devaluation Expectations: The Swedish Krona 1982-1991
1991 (English)Report (Other academic)
Devaluation expectations for the Swedish krona are estimated for the period 1982-1991 with several methods. First the "simplest test" is applied under either only the minimal assumption of "no positive minimum profit" or the additional assumption of uncovered interest parity. Then a more precise method suggested by Bertola and Svensson is used, in which expected rates of depreciation within the exchange rate band, estimated in several ways, are subtracted from interest rate differentials. Finally, estimated devaluations expectations are to some extent explained by a few macrovariables and parliament elections.
Place, publisher, year, edition, pages
Stockholm: IIES , 1991. , 64 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 495
exchange rate, target zone, realignment, devaluation, expectations, unit root, mean reversion
IdentifiersURN: urn:nbn:se:su:diva-41802OAI: oai:DiVA.org:su-41802DiVA: diva2:337791