The generalized Fisher effect (GFE) purports that Multiple Cholce o O O O O Real Interest rates are equal across countries. The expected percentage change
The generalized Fisher effect (GFE) purports that Multiple Cholce o O O O O Real Interest rates are equal across countries. The expected percentage change In exchange rate Is equal to the difference In Interest rates. The forward exchange rate Is directly related to spot exchange rate. Purchasing power should equalize across countries. The current forward rate Is an unblased predictor of future exchange rate
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