This note reviews the four fundamental parity conditions that underlie most theories regarding the association between exchange rates, inflation and interest rates.
Parity Conditions in International Markets Case Study Solution
The concepts are illustrated through an unified example exploring the relation between the U.S. dollar and Norwegian krone. The note present both an intuitive understanding of the relationships as well as precise mathematical formulas frequently employed in analysis.
PUBLICATION DATE: August 19, 2009 PRODUCT #: UV2538-HCB-ENG
This is just an excerpt. This case is aboutĀ GLOBAL BUSINESS