#1995-005A "Identifying Austria's Implicit Monetary Target: An Alternative Test of the 'Hard Currency' Policy"
by Michael J. Dueker, and Patrick K. Asea
March 1995

One simple test of the long-run viability of an exchange-rate peg, which complements tests based on market expectations, is to ask whether the implicit inflation target ofthe pegging country is the same as that of the anchor country. If the implicit inflation targets of the two countries are different, the peg's long-run credibility can be rejected. More...

#1995-003A "Non-Monotonic Long Memory Dynamics in Black-Market Exchange Rates."
by Michael J. Dueker, and Patrick K. Asea
March 1995

The dynamic response of Black market premia to domestic shocks is an important issue in the design and implementation of stabilization and reform programs. We use a vector autoregressive fractionally integrated model to provide new evidence on the dynamics of the official and Black market exchange rates. More...