Sentence examples for interest parity from inspiring English sources

The question arises as to what particular interest rates are used to calculate the interest parity.

Foreign-exchange markets operate under a state of "covered interest parity".

Main applications: Sovereign debt and default; Financial crises and sudden stops; Hedging, interest parity relationships, and the determination of exchange rates; Liability dollarization.

A twist or two of Basel How to spend it Bye-bye EMBI Carry on speculating ReprintsHowever, economic theory also suggests that "uncovered interest parity" should operate.

There have been times, and even rather prolonged periods, in which the forward rate for a currency has fallen below (or risen above) its interest parity.

The strategy was originally designed for equity markets, but it also generates abnormal returns when applied to uncovered interest parity deviations for five countries.

In normal times arbitrage may be expected to hold forward rates to their interest parities.

So this should give support to uncovered-interest parity and deter the carry trade.

The "Methods" section explains the peculiarities of interest-parity conditions involving bills of exchange.

Hence, interest-parity conditions involving long-bills differ from their modern counterparts (see Juhl et al. 2006).

This paper has examined the interest-parity condition during the "belle epoque" of the gold standard (1880 1914).