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9. Suppose the expected inflation is 2% for the US and 3% for New Zealand. If all international parity conditions hold, what should be the
9. Suppose the expected inflation is 2% for the US and 3% for New Zealand. If all international parity conditions hold, what should be the relation between the USD interest rate and the NZD (New Zealand dollar) interest rate? _____________
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Modeling Monetary Economies
Authors: Bruce Champ, Scott Freeman, Joseph Haslag
4th Edition
1316508671, 1316508676, 9781316723302 , 978-1107145221
