Interest-Rate Parity Condition
Long run implications of the covered interest rate parity condition: evidence during the recent crisis and non crisis periods
... covered interest rate parity condition (CIRP) ...by interest rates, leaving the covered CIRP as a valid economic concept, at least in the ...
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The Economics of Uncovered Interest Parity Condition for Emerging Markets: A Survey
... exchange rate resulting in systematic deviations from the UIP condition is expected to be mostly confined to emerging markets, as this phenomenon may be intensified under severe structural ...exchange ...
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A new Test of Uncovered Interest Rate Parity: Evidence from Turkey
... Uncovered interest rate parity (UIP) states that the nominal interest rate differential between two countries must be equal to expected change in the exchange ...UIP condition ...
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Does Uncovered Interest Rate Parity Hold in Turkey?
... UIP condition, of course, indicates one or more of these assumptions ...exchange rate risk, which contributes to the deviations from the UIP ...economic condition and weaker macroeconomic ...
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Interest-parity conditions during the era of the classical gold standard (1880–1914)—evidence from the investment demand for bills of exchange in Europe
... the interest-parity condition as regards the London investment demand for continental bills of exchange can no longer be rejected for the case of Paris (whereas there is only a rejection at the 10% ...
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Currency Forecast Errors at Times of Low Interest Rates : Evidence From Survey Data on the Yen/dollar Exchange Rate
... exchange rate survey data generated by the Japan Center for International Finance (JCIF) to analyse investor’s forecast errors about the yen/ dollar exchange ...uncovered interest parity ...
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Uncertainty and the Uncovered Interest Parity Condition: How Are They Related?
... exchange rate expectations are rational -that is, whether exchange rate forecasts are ...the interest differential so that estimated slopes are ...
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Does the uncovered interest parity hold in short horizons?
... UIP condition would hold if the return on a domestic currency deposit equals the expected return from converting the domestic currency into the foreign currency, investing it in a foreign deposit and then ...
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The uncovered interest rate parity failure from 2002 to 2005 : an implicit consensus of carry trade
... exchange rate reverses, to its fundamental level is slow, investors may bid up the price of a currency with a higher interest rate, ...high interest rate currency ...
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Dynamic financial linkages among the Asia Pacific economies: an empirical assessment of real interest parity condition
... real interest rates in the ASEAN region is increasingly becoming integrated with the regional as well as the major financial ...that interest rates used in the analysis are representative of the ...
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Comparing Forecasting Performance of Exchange Rate Models: Evidence from Emerging Asian Economies
... Exchange rate forecasting is an elusive topic in international finance regardless of massive studies and lot of resources devoted for ...exchange rate collapsed and floating exchange rate regime ...
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Predicting Exchange Rate Movements: A Comparison of Using the Big Mac Index and Using Uncovered Interest Rate Parity.
... power parity is a theory which states that the exchange rate should be in equilibrium based on identical relative price levels of two ...exchange rate of ...broad parity in prices across a ...
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Real interest rate parity: evidence from East Asian economies relative to China
... This study examines the real interest rate parity (RIP) hypothesis in the case of East Asian economies by taking China as foreign counterpart. Results obtained from panel unit root tests are in line ...
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Financial Market Integration of South Asian Countries: Panel data Analysis
... The RIPH states that if the agents make their forecasts using rational expectations and arbitrage forces are free to act in the goods and asset markets, the real interest rates among countries will equalize. ...
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Topics in Empirical Finance: Real Interest Rate Parity, Uncovered Interest Rate Parity, and Forecasting Inflation.
... inflation rate while low growth in the money supply has little effect on ...inflation rate data, which is rarely used in the existing literature, is important for forecasting Chinese ...
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The effect of interest rate volatility on interest income of commercial banks in Rwanda
... the interest income of commercial ...high interest income earned from interest rate volatility could easily be wiped out by high operating ...recommended interest rate volatility ...
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A Liquidity Based Resolution of the Uncovered Interest Parity Puzzle
... nominal interest rates raise asset prices by fueling liquidity premia: for instance Geromichalos, Licari, and Suarez-Lledo (2007), Jacquet and Tan (2012), Lester, Postle- waite, and Wright (2012),Geromichalos, ...
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Down Scaling Interest in Interest Rate
... The table illustrates the sizable difference between the future values-earnings over various payment periods. The larger the number of payments periods the larger is the future value. The rate of change of the ...
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Uncovered Interest Parity: Cross sectional Evidence
... Using monthly time-series data, the bilateral exchange rates of one country against all other countries are calculated, thus producing a large number of bilateral exchange rates at each [r] ...
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The Swiss Franc exchange rate and deviations from uncovered interest parity: Global vs domestic factors
... exchange rate should be very sensitive to fluctuations in global ...exchange rate seems strongly influenced by global factors in the first half of our sample period but much less so in the last ...exchange ...
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