Suppose in 2013 the UK pound and Argentine peso interest rate is 7 percent and 5 percent

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Suppose in 2013 the UK pound and Argentine peso interest rate is 7 percent and 5 percent respectively. A year later, if the expected rate of real peso depreciation against pound is 1.2, and the expected inflation rate in UK is 3 percent, calculate Argentina’s expected inflation level.

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International Finance: Theory And Policy

ISBN: 9781292065199

10th Edition

Authors: Krugman, Paul R.; Melitz, Marc J.; Obstfeld, Maurice

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