This paper tests whether significant changes in stock return volatility, market risk, and foreign
exchange rate risk exposures took place around the launch of the Euro in 1999. The …

It is widely believed that following the adoption of the euro, long run purchasing power parity
(PPP) is more likely to hold within the euro countries. By applying the panel unit root test of …

This paper analyzes purchasing power parity (PPP) for the euro area. We study the impact of
the introduction of the euro in 1999 on the behavior of real exchange rates. We test the PPP …

We test for real interest rate convergence in the EU25 area. Our contribution is twofold: first,
we account for the previously overlooked effects of structural breaks on real interest rate …

While economic theory highlights the usefulness of flexible exchange rates in promoting
adjustment in international relative prices, flexible exchange rates also can be a source of …

The effect of the single currency on the Purchasing Power Parity (PPP) hypothesis is
examined in this study for the 15 EU countries, vis a vis the US dollar, before and after the …

Since the introduction of the single currency in 1999, major progress has been made
towards achieving an integrated European capital and financial market. Available evidence …

The stationarity of OECD real exchange rates over the period 1972–2008 is tested using a
panel of 26 member countries. The methodology followed stems from the need to meet …

Does long-run purchasing power parity (PPP) hold over the post-1973 floating exchange
rate period? Panel unit root tests provide evidence of PPP that increases with the number of …

This paper uses a time-varying error-correction model to measure the speed of real
exchange rate (RER) convergence of the original European monetary union (EMU) member …