Subject category:
Finance, Accounting and Control
Published by:
Darden Business Publishing
Version: 06.1998
Length: 11 pages
Data source: Published sources
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Abstract
This note describes the links between inflation, exchange rates, and interest rates in an international setting. Students are introduced to the basic ideas, which are illustrated with data from four countries. Emphasis is on the managerial implications of these links and their relevance to forecasting exchange rates. The note has proved useful as both background reading to supplement cases and as part of preparation for a lecture on the topic.
About
Abstract
This note describes the links between inflation, exchange rates, and interest rates in an international setting. Students are introduced to the basic ideas, which are illustrated with data from four countries. Emphasis is on the managerial implications of these links and their relevance to forecasting exchange rates. The note has proved useful as both background reading to supplement cases and as part of preparation for a lecture on the topic.