oussama94
05-29-2017, 00:03
This model also stresses that one of the key factors in determining the
severity of an exchange rate’s response to a shift in interest rates is the
expected persistence of that shift. Simply put, a rise in interest rates that
is expected to last for five years will have a much larger impact on the
exchange rate than if that rise were expected to last for only one year.
severity of an exchange rate’s response to a shift in interest rates is the
expected persistence of that shift. Simply put, a rise in interest rates that
is expected to last for five years will have a much larger impact on the
exchange rate than if that rise were expected to last for only one year.