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Devaluation Expectations: The Swedish Krona 1982-1991 / Hans Lindberg, Lars E.O. Svensson, Paul Soderlind.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Lindberg, Hans.
Contributor:
National Bureau of Economic Research.
Svensson, Lars E.O.
Soderlind, Paul.
Series:
Working Paper Series (National Bureau of Economic Research) no. w3918.
NBER working paper series no. w3918
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Devaluation Expectations
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 1991.
Summary:
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. In addition the probability density of the time of devaluations is estimated. Finally, estimated devaluation expectations are to some extent explained by a few macrovariables and parliament elections.
Notes:
Print version record
November 1991.

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