WORKING PAPER SERIES NO 1532 / APRIL 2013 THE EURO EXCHANGE RATE DURING THE EUROPEAN SOVEREIGN DEBT CRISIS DANCING TO ITS OWN TUNE? Michael Ehrmann, Chiara Osbat, Jan Strasky and Lenno Uusküla In 2013 all ECB publications feature a motif taken from the €5 banknote. NOTE: This Working Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB. Acknowledgements This paper presents the authors’ personal opinions and does not necessarily reflect the views of the European Central Bank, the Bank of Estonia, the Eurosystem or the OECD. We thank Paolo Gambetti for research assistance, the editorial board and an anonymous referee of the ECB Working Paper Series as well as participants at seminars at the ECB, the Bank of Estonia, and a workshop at the Bank of Italy for useful comments. Michael Ehrmann European Central Bank; e-mail:
[email protected] Chiara Osbat European Central Bank; e-mail:
[email protected] Jan Strasky Organisation for Economic Co-operation and Development; e-mail:
[email protected] Lenno Uusküla Bank of Estonia; e-mail:
[email protected] Lamfalussy Fellowships This paper has been produced under the ECB Lamfalussy Fellowship programme. This programme was launched in 2003 in the context of the ECB-CFS Research Network on “Capital Markets and Financial Integration in Europe”. It aims at stimulating high-quality research on the structure, integration and performance of the European financial system. The Fellowship programme is named after Baron Alexandre Lamfalussy, the first President of the European Monetary Institute.