Country real interest rate compared to us


Suppose that the international parity conditions all hold and a country has a higher nominal interest rate than the United States. Characterize the country's inflation rate compared to the United States, the country's expected exchange rate change versus the dollar, the country's currency forward premium (or discount) versus the dollar, and the country's real interest rate compared to the U.S. real interest rate.

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Finance Basics: Country real interest rate compared to us
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