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Hello, Can someone explain the following reasoning in a simple and extensive way. How the expected increase or decrease of domestic interest rates in the
Hello,
Can someone explain the following reasoning in a simple and extensive way.
- How the expected increase or decrease of domestic interest rates in the future might affect immediately the actual nominal exchange rate under interest rate parity condition.
Would really appreciate your explanations.
Best regards,
M.Dee
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
