标题: PPP, IRP, URIP, Fisher's -- which is long term [打印本页] 作者: PieMan 时间: 2011-7-11 15:17 标题: PPP, IRP, URIP, Fisher's -- which is long term
PPP holds in the long term
IRP holds in the short term
What about
URIP (uncovered interest rate parity)?
International Fisher's relations?作者: RepoToronto 时间: 2011-7-11 15:17
FSAdummy Wrote:
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> PPP holds in the long term
Not a requirement, but empirical data show it does so.
>
> IRP holds in the short term
Covered Interest Rate Parity should hold for all maturities by definition.
>
> What about
>
> URIP (uncovered interest rate parity)?
It the expected sport rate for a maturity comes true, it does. But not a requirement as covered IRP is.
>
> International Fisher's relations?
It simply says that interest rate differential between two countries should equate the countries' inflation rate differentials. Not a requirement again, because inflation rates may deviate from what the int. fisher theory suggests and real F/x rate may change accordingly.
