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International finance homework question Chapter : Relationship among inflation interest rate and exchange rate Comprehensively and neatly as possible, complete the three graphs below, illustrating

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International finance homework question

Chapter : Relationship among inflation interest rate and exchange rate

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Comprehensively and neatly as possible, complete the three graphs below, illustrating the IRP, PPP and IFE theories. (15 marks) Explain the relevance of the coordinates: "Z" and "Y" regarding each model and possible opportunities for arbitrage/trade.Describe separately the purpose of each model regarding their relationships among inflation, interest rates and exchange rates respectively. Include relevant assumptions in the models. Use the space proved for the description of each model. (15 marks)

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