Uncovered interest parity / prepared by Peter Isard.

This paper provides an overview of the uncovered interest parity assumption. It traces the history of the interest parity concept, summarizes evidence on the empirical validity of uncovered interest parity, and discusses different interpretations of the evidence and the implications for macroeconomi...

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Bibliographic Details
Main Author: Isard, Peter (Author)
Corporate Authors: International Monetary Fund, IMF Institute
Format: eBook
Language:English
Published: [Washington, D.C.] : International Monetary Fund, IMF Institute, 2006.
Series:IMF working paper ; WP/06/96.
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Online Access:Click for online access
Description
Summary:This paper provides an overview of the uncovered interest parity assumption. It traces the history of the interest parity concept, summarizes evidence on the empirical validity of uncovered interest parity, and discusses different interpretations of the evidence and the implications for macroeconomic analysis. The uncovered interest parity assumption has been an important building block in multiperiod models of open economies, and although its validity is strongly challenged by the empirical evidence, at least at short time horizons, its retention in macroeconomic models is supported on pragmatic grounds by the lack of much empirical support for existing models of the exchange risk premium.
Physical Description:1 online resource (12 pages)
Format:Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Bibliography:Includes bibliographical references.
ISBN:1283101262
9781283101264
1451908903
9781451908909
1462356877
9781462356874
1452744092
9781452744094
9786613823311
6613823317
ISSN:2227-8885 ;
Language:English.
Reproduction Note:Electronic reproduction.
Source of Description, Etc. Note:Print version record.
Action Note:digitized