International Fisher Effect and OBR: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
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This theory predicts that the spot foreign exchange rate will change over time to reflect and offset differences in interest rates in the respective currencies.  
''UK''.


So for example, unhedged currency depreciation losses will on average negate and match exactly any gains on interest differentials between the two currencies.
Office for Budget Responsibility.




== See also ==
== See also ==
* [[Carry trade]]
* [[Budget]]
* [[Depreciation]]
* [[Office for Budget Responsibility]]
* [[Expectations theory]]
* [[Fisher Effect]]
* [[Four way equivalence model]]
* [[Interest rate parity]]
* [[Purchasing power parity]]
* [[Spot rate]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Latest revision as of 13:10, 15 April 2019

UK.

Office for Budget Responsibility.


See also