Template-type: ReDIF-Paper 1.0
Author-Name: Bevilacqua, Franco
Author-Email: f.bevilacqua@MERIT.unimaas.nl
Author-Workplace-Name: United Nations University,  Maastricht Economic and social
	 Research and training centre on Innovation and Technology
Title: Random walks and cointegration relationships in international parity
	 conditions between Germany and USA for the Bretton-Woods period 
Abstract: Juselius (1995), MacDonald (2000), Juselius and MacDonald (2000) provided
	 an explanation to some basic issues in international monetary economics
	 concerning the validity of parity conditions. This paper instead restricts
	 the analysis to the years between 1957 and 1969 and the countries under
	 scrutiny are Germany and USA. Results can be easily compared with the Post
	 Bretton Woods analysis by Juselius and MacDonald (2000). The main result of
	 this paper is that important cointegration relationships found for the Post
	 Bretton-Woods by Juselius and MacDonald (2000) essentially hold for the
	 Bretton-Woods period as well, albeit the two periods were characterized by
	 distinct exchange rate regimes and a different regulation in capital markets.
Classification-JEL: E31, E43, F31, F32
Keywords: ppp, uip, Fisher parity, Bretton-Woods regime
Series: UNU-MERIT Working Papers
Creation-Date: 2006
Number: 016
File-URL: http://www.merit.unu.edu/publications/wppdf/2006/wp2006-016.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2006016