标题: Interest rates and currency values [打印本页] 作者: Palantir 时间: 2011-7-11 19:41 标题: Interest rates and currency values
On page 104, Volume 3(Economics), the relative strength approch to predicting currency values says that if a country has high interest rates, the currency will appreciate. But according to Interest rate parity, the currency should depreciate. Which is correct? Thank you.作者: lcw77 时间: 2011-7-11 19:41
The country with the higher real rate will appreciate.
I believe Interest Rate Parity assumes that real rates are equal and nominal rates are different.
