Question
Assume that the expected annual inflation in U.S. is 3% and in U.K. is 5%. The current spot rate is S(USD/) = 1.65. According to
Assume that the expected annual inflation in U.S. is 3% and in U.K. is 5%. The current spot rate is S(USD/) = 1.65. According to PPP, what would be next years exchange rate between US and UK?
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The Bank Credit Analysis Handbook
Authors: Jonathan Golin, Philippe Delhaise
2nd Edition
0470821574, 978-0470821572
