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- 2011-7-2
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- 2016-8-30
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Yeah, this concept trips me off. If rates are higher in UK, wouldn't investors would rush to invest in that market increasing demand for UK punds? Obviously because of IRP, the forward premium/discount on the exchange rate will reflect the current rate difference so you dont have a arbitrage profit.
janakisri, doesnt PPP formula involve Price/inflation levels and exchange rates? |
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