This volume focuses on 14 Southern African Development Community (SADC) countries. It features a set of tests of the purchasing power parity theorem (PPP) and the uncovered interest rate parity (UIP) theorem amongst these countries, using time-series econometrics techniques. The analysis employs the full information maximum likelihood multivariate co-integration methodology developed by Johansen (1988, 1991) and Johansen and Juselius (1990, 1991). Of novel interest is the application of a long run structural modelling approach first suggested by Pesaran and Shin (1997). The technique imposes independent theory restrictions on the coefficients of the accepted co-integrating vectors based on long-run economic theory, in order to reach conclusions a-propos the validity of the propositions under study.