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