Cite JOURNAL ARTICLE
Measuring Exchange Rate Smoothness across Regimes
Credit and Capital Markets – Kredit und Kapital, Vol. 29 (1996), Iss. 4 : pp. 528–544
Hans Dewachter, Leuven
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This paper proposes a framework to analyse the smoothness of exchange rates across regimes and applies this framework to the ERM rates both quoted against the Deutsche mark and the French franc. It is found that the traditional conclusion that semi-fixed exchange rate regimes decrease the smoothness crucially depends on whether one analyses Deutsche mark rates or French franc rates.