Implicit bands in the Spanish peseta/Deutschmark exchange rate, 1965-1998

• Autores: Francisco J. Ledesma Rodríguez, Manuel Navarro Ibáñez, Jorge V. Pérez Rodríguez, Simón Sosvilla Rivero
• Localización: Applied financial economics, ISSN 0960-3107, Vol. 17, Nº. 10-12, 2007, págs. 921-932
• Idioma: inglés
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• Resumen

  • The objective of this article is to identify implicit bands for the Spanish peseta/Deutschmark exchange rate. To this end, based on the 'natural' classification approach suggested by Reinhart and Rogoff (2004), we propose a statistical test to assess the statistical significance of the outcome of their classifying algorithm. The test is applied to the period 1965-1998, indicating our results existence of fluctuation bands in the 1980s and 1990s, before and after the entry of the peseta into the European Monetary System.