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Results tagged with international-trade
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user 10820
International trade theory is a sub-field of economics which analyzes the patterns of international trade, its origins, and its welfare implications.
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Uncovered Interest Parity question
I made the assumption that the expected exchange rate should change, when in fact the current exchange rate should change in response to an increase in US bank's interest rate. The future exchange rat …
- 41
4
votes
2
answers
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Uncovered Interest Parity question
I am trying to understand the fact that, given that the uncovered interest parity holds, a rise in dollar interest rates will cause the dollar to appreciate. Is this a good intuition?
Uncovered inter …
- 41