Real interest parity in Central and Eastern European countries: evidence on integration into EU and the US markets

• Main Authors: Baharumshah, Ahmad Zubaidi, Soon, Siew Voon, Borsic, Darja
• Format: Article
• Language: English
• Published: Elsevier 2013
• Online Access: http://psasir.upm.edu.my/id/eprint/28299/1/Real%20interest%20parity%20in%20Central%20and%20Eastern%20European%20countries.pdf; http://psasir.upm.edu.my/id/eprint/28299/; http://www.sciencedirect.com/science/article/pii/S1042443113000188

We investigate the validity of real interest parity (RIP) for the 13 Central and Eastern European countries, over the period 1996–2011. We consider a panel stationarity test that allows for multiple breaks advocated by Carrion-i-Silvestre et al. (2005) and confirmed the strong version of RIP. We fou...