The text points out that covered interest parity holds quite closely for deposits of differing currency denominations

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The text points out that covered interest parity holds quite closely for deposits of differing currency denominations issued in a single financial center. Why might covered interest parity fail to hold when deposits issued in different financial centers are compared?
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International Finance Theory and Policy

ISBN: 978-0133423648

10th edition

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

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