As shown in the figure below, there exist deviations from international Fisher effect (IFE) for Bangladesh (home country) and China (foreign country), suggesting profit making
As shown in the figure below, there exist deviations from international Fisher effect (IFE) for Bangladesh (home country) and China (foreign country), suggesting profit making possibilities. How could you capitalize from this situation? Graph-1: International Fisher Effect for Bangladesh and China . . . . * * * Standard Trend Linear (IFE Trend) 2 - % Changes of ER (Yen/TK) -2 2 -2 -6 Difference between Bangladesh and China Nominal Interest Rates (%)
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