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Purchasing Power Parity theory posits that exchange rates adjust to inflation differences. Annual price inflation for the next four years in Norway is forecast at

Purchasing Power Parity theory posits that exchange rates adjust to inflation differences. Annual price inflation for the next four years in Norway is forecast at 3.0% 3.2% 2.7% 2.8% Annual price inflation for the next four years in Europe is forecast at 6.0% 7.0% 6.2% 6.4% The Spot exchange rate is at > .11 Euro/kr PPP 252 days If the annual interest rate in USA is presently 3.0% If the annual interest rate in U Kingdom is presently 6.0% IRP > 252 days Pds

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