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Financial integration and the term structure of interest rates

✍ Scribed by Adam Traczyk


Book ID
120743962
Publisher
Springer-Verlag
Year
2012
Tongue
English
Weight
616 KB
Volume
45
Category
Article
ISSN
0377-7332

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In this paper we examine the relationship between the term structure of interest rates for six major European Union countries, to discover if the Exchange Rate Mechanism has lead to a converging of domestic term structures. We test this hypothesis using a model of international interest rate parity