IRP Implications since the International Credit Crisis From 2008 (when the international credit crisis occurred) until 2015 , the U.S. government maintained interest rates at extremely low levels. Assume that interest rate parity existed over that time period. Write a short essay on what the U.S. interest rate conditions imply about the forward rate of the Australian dollar over this period.

FindFind

International Financial Management

14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698
FindFind

International Financial Management

14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698

Solutions

Chapter 7, Problem 1CT
Textbook Problem

IRP Implications since the International Credit Crisis From 2008 (when the international credit crisis occurred) until 2015 , the U.S. government maintained interest rates at extremely low levels. Assume that interest rate parity existed over that time period. Write a short essay on what the U.S. interest rate conditions imply about the forward rate of the Australian dollar over this period.

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