oussama94
05-29-2017, 00:08
There is a great deal of debate
among international economists over whether there is a strong and
statistically significant link between changes in a nation’s interest rate
and currency price. The main weakness of this model is that it does not
take into account a nation’s current account balance, relying on *******
flows instead. Indeed, the model tends to overemphasize ******* flows
at the expense of numerous other factors: political stability, inflation,
economic growth, and so on. Absent these types of factors, the model
can be very useful since it is quite logical to conclude that an investor
will naturally gravitate toward the investment vehicle that pays a higher
reward.
among international economists over whether there is a strong and
statistically significant link between changes in a nation’s interest rate
and currency price. The main weakness of this model is that it does not
take into account a nation’s current account balance, relying on *******
flows instead. Indeed, the model tends to overemphasize ******* flows
at the expense of numerous other factors: political stability, inflation,
economic growth, and so on. Absent these types of factors, the model
can be very useful since it is quite logical to conclude that an investor
will naturally gravitate toward the investment vehicle that pays a higher
reward.