If you return to Figure 9-4, you will notice that London Eurodollar interest rates tend to exceed

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If you return to Figure 9-4, you will notice that London Eurodollar interest rates tend to exceed U.S. certificate of deposit rates after the global financial crisis, but not before. Why do you think this is the case?

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International Finance Theory and Policy

ISBN: 978-0133423648

10th edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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Question Posted: May 22, 2017 10:04 AM

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If you return to Figure 9-4, you will notice that London Eurodollar interest rates tend to exceed

Question:

Percent per year 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 -0.1 London three-month Eurodollar rate less U.S. three-month certificate of deposit rate.

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The London Eurodollar interest rates tend to be higher than that of US ...View the full answer

International Finance Theory and Policy

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