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the real interest rates in USA and Canada is the same at 1.0% whereas the nominal interest rates are 4% and 6% respectively. using the

the real interest rates in USA and Canada is the same at 1.0% whereas the nominal interest rates are 4% and 6% respectively. using the fisher effect help find Jim the expected inflations in USA and Canada. the spot rate of usd/cad is 0.8 and one year foward rate is 0.7849. he learned that if market is in equilibruim foward expection parity should hold. is the market in equilibruim

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