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ssume that the U.S. and Chile nominal interest rates are equal. Then, the U.S. nominal interest te decreases while the Chilean nominal interest rate remains
ssume that the U.S. and Chile nominal interest rates are equal. Then, the U.S. nominal interest te decreases while the Chilean nominal interest rate remains stable. According to the ternational Fisher effect, this implies expectations of than before, and that the Chilean peso hould against the dollar. 10.05) gher U.S. inflation; depreciate her U.S. inflation; appreciate -wer U.s. inflation, appreciate wer Us, inflation; depreciate DB D S320/# 100 B
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