Interest Rate Parity

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A theory stating that the difference between interest rates in two countries is the difference between the foreign exchange rate and the spot rate of their two currencies. According to this theory, when one makes two fixed investments in two different currencies, the return on both investments are the same even though interest rates may be different in absolute terms. See also: Purchasing power parity.

interest rate parity

The interrelationship between currency exchange forward rates and spot rates that result from interest rate differentials. If interest rates are higher in the United States than in a foreign country, the forward dollar value of the foreign currency will exceed the spot dollar value of the foreign currency.

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Covered Interest Rate Parity Diff Interest Rate Parity Line Interest Rate Parity Theorem			Uncovered interest rate parity and the expectations hypothesis of the term structure: Empirical results for the US and Europe. External macroeconomic factors and the link between short- and ... by Camarero, Mariam; Ordonez, Javier; Tamarit, Cecilio / Southern Economic Journal By focusing on the economic substance of foreign currency movements as explained by the interest rate parity relationship, this article attempts to articulate a tax policy framework that is internally coherent, consistent with the general scheme of the Income Tax Act, and minimally distortionary. Foreign currency considerations in tax law and policy by Akbari, Sina / University of Toronto Faculty of Law Review The paper first tests the validity of uncovered interest rate parity (UIP) to ascertain the presence of excess returns over what UIP predicts. Do excess returns vary across de facto exchange rate regimes? A ... by Abdelbaky, Mahmoud; Sylwester, Kevin / Indian Journal of Economics and Business			Interest Due Interest During Construction Interest Equalization Tax Interest Expense Interest in Arrears interest in property Interest on interest Interest Only Strip Interest Payable Interest Payment Interest payments interest rate Interest Rate Adjustment Period Interest Rate Agreement Interest Rate Anchor interest rate cap Interest Rate Ceiling Interest Rate Decrease Cap Interest Rate Floor Interest Rate Future Interest Rate Futures Contract Interest Rate Increase Cap Interest Rate Index Interest Rate on Debt Interest Rate Option Interest Rate Parity Interest Rate Parity Line Interest Rate Parity Theorem Interest Rate Risk Interest Rate Swap Interest Received Interest Sensitive Stock Interest Subsidy Interest Tax Shield Interest-Bearing Eligible Liabilities Interest-Free Interest-Only interest-only loan Interest-Only Mortgage interest-only securities Interest-Only Strip Interest-Rate Risk Interest-sensitive insurance policy Interest-Sensitive Stock Interested Shareholder Interets a payer Interfund transactions Intergovernmental Authority on Drought and Development Intergovernmental Conference Intergovernmental Council of Copper Exporting Countries Interim Dividend			Interest rate ceiling Interest rate ceiling Interest rate ceiling Interest Rate Ceilings Interest Rate Ceilings Interest Rate Ceilings Interest Rate Ceilings Interest Rate Ceilings Interest Rate Decrease Cap Interest rate derivatives Interest Rate Differential Interest rate floor Interest Rate Floors Interest rate future Interest rate future Interest Rate Futures Interest rate futures contract Interest Rate Futures Contracts Interest Rate Guarantee Interest Rate Increase Cap Interest Rate Index Interest rate on debt Interest Rate on Excess Reserves Interest rate option Interest rate option Interest Rate Option Contract Interest Rate Option Contracts Interest rate options Interest Rate Options Contract Interest Rate Options Contracts Interest Rate Parity Interest rate parity line Interest rate parity theorem Interest rate parity theorem Interest Rate Product Interest Rate Reduction Refinance Interest Rate Reduction Refinance Loan Interest rate risk Interest rate risk Interest Rate Risk Management Interest Rate Risks Interest Rate Sensitive Liabilities Interest Rate Sensitivity Interest Rate Support Interest rate swap Interest rate swap Interest rate swap Interest rate swap Interest rate swaps Interest rates Interest rates Interest rates Interest rates Interest rates Interest Received Interest reipublicae ne maleficia remaneant impunita Interest reipublicae quod homines conserventur Interest reipublicae res judicatas non rescindi Interest reipublicae suprema hominum testamenta rata haberi Interest reipublicae ut carceres sint in tuto Interest reipublicae ut qualibet re sua bene utatur

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