Testing Hypotheses in an I(2) Model with Applications to the Persistent Long Swings in the Dmk/$ Rate



C Data

data

1980           1990           2000

1980           1990           2000


1980           1990           2000

1980           1990           2000


1980           1990

0.0125


1980

1990           2000

2000

Lone-term bond rate. USA

0.0100

0.0075

0.0050

1980           1990           2000                   1980           1990           2000


4∙W

Graphs of the short and the long-term interest rates, levels in the r.h.s. and

differences in the l.h.s.

33



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