Question
One-year interest rates are currently 1.5% in the United States and 4.8% in Great Britain. The current spot rate between the pound and the dollar
One-year interest rates are currently 1.5% in the United States and 4.8% in Great Britain. The current spot rate between the pound and the dollar is $1.85/. What would you expect the spot rate for the pound to be one year hence if you believe in the international Fisher effect?
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Public Finance
Authors: Harvey S Rosen
7th Edition
0072876484, 978-0072876482
