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标题: interest rate parity and PPP [打印本页]

作者: pawn    时间: 2011-7-13 15:04     标题: interest rate parity and PPP

does either of these hold in the short-run? swore a schweser question said one of them did, but can't remember
作者: bboo    时间: 2011-7-13 15:04

Interest rate parity

NO EXCUSES
作者: Analti_Calte    时间: 2011-7-13 15:04

PPP works only long term, so base only long term currency market expectations using PPP.

Currency futures can be expected to incorporate IRP at any instance-- so while underlying rates will move slowly overtime, the IRP effects are observable instantly via futures. You could call this "IRP holds in the short term"



Edited 1 time(s). Last edit at Wednesday, June 1, 2011 at 08:46PM by jbaphna.
作者: Windjam    时间: 2011-7-13 15:04

IRP -- generally short term
PPP -- generally longer term




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