This paper examines the bahaviour of Irish exchange rates and interest rates over two periods, one immediately before, the other immediately after, the widening of the narrow band of the Exchange Rate Mechanism of the European Monetary System in August 1993. It is shown that a benefit of the dismantling of the narrow band was that the Irish pound did not come under speculative pressure as sterling weakened late in 1994 and it was possible to check the currency's appreciation relative to sterling by a depreciation relative to the DM. Moreover, the influence of the sterling exchange rate on Irish interest rates appears to have been substantially reduced under the new regime.
External Notes
A hard copy is available in UCD Library at GEN 330.08 IR/UNI
Type of Material
Working Paper
Publisher
University College Dublin. School of Economics
Series
UCD Centre for Economic Research Working Paper Series
WP95/5
Subject – LCSH
Foreign exchange rates--Ireland
Interest rates--Ireland
Monetary policy--Ireland
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
