Template-Type: ReDIF-Paper 1.0
Title: An Empirical Evaluation of the Portfolio Model for the Dollar-Mark Exchange Rate
Author-Name: Roland Schmidt
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Abstract: This paper estimates the monetary and the portfolio model for the 
 dollar-mark exchange rate. It turns out that German and US bonds are
 imperfect substitutes and the observed exchange rate fluctuations are to
 a significant part due to a varying risk premium. The risk premium reflects
 relative indeptedness and inflation risk but not real exchange rate risk.
Series: Sonderforschungsbereich 303, University of Bonn, Germany
Length: 34 pages
Creation-Date: 1992-10
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Handle: RePEc:bon:bonsfb:223