Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
1,885,700,221 visitors served.
forum mailing list For webmasters
?
New: Language forums
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Interest Rate Parity

   Also found in: Acronyms, Wikipedia 0.01 sec.
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.
Interest Rate Parity
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.


How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in ? References in periodicals archive
 
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
Using a wider set of models that have been proposed in the last decade -- interest rate parity, productivity based models, and a composite specification incorporating sticky-price, productivity, and portfolio balance models - we compare these models against a benchmark, the Dornbusch-Frankel sticky price monetary model.
Explaining exchange rate behavior. (Research Summaries) by Chinn, Menzie D. / NBER Reporter
Equation (8) is the uncovered interest rate parity condition, which states that the domestic nominal interest rate [R.
Stabilizing inflation in the open economy by Jansen, Dennis W. / Southern Economic Journal
More results
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2010 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.