kkn006

passme Wrote:
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> if a country's nominal interest is high (possibly
> due to high inflation), then its currency will
> depretiate.
> if a country's real interest is high, then its
> currency will appretiate.
>
> it can be very confusing if they dun'd word it
> clearly


only problem with your second point is that if one country's real interest rate is higher than the others then it implies that IRP does not hold...