Abstract
A number of studies have examined international monetary integration during periods of fixed exchange rates and mobile capital. These studies have not only failed to reach a concensus but have been deficient in their treatment of serial correlation and lag structures. This paper highlights these two aspects and indicates the presence of considerable integration, the nature of which conforms with theory more satisfactorily over the period 1961(1)–1967(6) than over the period to 1970(12) usually taken as relevant. In contrast with much of the literature no lagged relationship is found to exist between the Eurodollar and US rates over this period. As expected, covered rates exhibit greater dependence upon external influences than uncovered.
Published Version
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