Tải bản đầy đủ - 0 (trang)
PART III. THE FISHER EFFECT (FE)

PART III. THE FISHER EFFECT (FE)

Tải bản đầy đủ - 0trang

THE FISHER EFFECT

B. Real Rates of Interest

1. Should tend toward equality

everywhere through arbitrage.

2. With no government

interference nominal rates vary

by inflation differential or

rh - r f = i h - i f

23



THE FISHER EFFECT

C. According to the Fisher

Effect,

countries with higher

inflation rates have higher

interest rates.



24



THE FISHER EFFECT

D. Due to capital market

integration globally, interest

rate differentials are

eroding.



25



PART IV. THE INTERNATIONAL

FISHER EFFECT (IFE)

I. IFE STATES:

A. the spot rate adjusts to the

interest

rate differential

between two

countries.

26



THE INTERNATIONAL FISHER

EFFECT

IFE = PPP + FE

et

(1 + rh )

=

e0

(1 + r f ) t

t



27



Tài liệu bạn tìm kiếm đã sẵn sàng tải về

PART III. THE FISHER EFFECT (FE)

Tải bản đầy đủ ngay(0 tr)

×