Currency Markets and Parity Conditions
written by Thunderbird Global School of Management (Glendale, AZ: Thunderbird Global School of Management, 2003, originally published 2003), 12 page(s)
Details
- Abstract / Summary
- This Note develops the foundations of the ideas underlying much of the theory and practice of International Finance, notably the basic 'parity conditions' linking exchange rates, interest rates, and inflation rates. Specifically, the note develops the ideas of purchasing power parity, speculative efficiency, uncovered interest parity, and the international Fisher effect, and the links among these from a managerial perspective. It includes a brief discussion of the factors driving exchange rate changes in the medium term, and of the three types of exchange rate exposure that cross-border firms face, namely translation exposure, transaction exposure, and economic exposure.
- Field of Interest
- Business & Economics
- Copyright Message
- Copyright © 2003 by the Thunderbird Global School of Management. All Rights Reserved.
- Corporate Author
- Thunderbird Global School of Management
- Content Type
- Case study
- Duration
- 0 sec
- Format
- Text
- Original Publication Date
- 2003
- Page Count
- 12
- Publication Year
- 2003
- Publisher
- Thunderbird Global School of Management
- Place Published / Released
- Glendale, AZ
- Subject
- Business & Economics, Social Sciences, International Business, Monetary policy, International trade, Economic conditions, Markets, Management of Companies and Enterprises, Negócios Internacionais, Negocios Internacionales, Exchange Rates and Currency Issues
- Keywords and Translated Subjects
- Negócios Internacionais, Negocios Internacionales
