Abstract
(1) ~~~~~~r, = r* + Xl (1) r1=?x where r, is the current yen interest rate on bonds with a term to maturity of length 1, r* is the dollar interest rate on bonds with a term to maturity of length 1, and xl is the expected average rate of appreciation of the dollar against the yen over the time period 1. Further, suppose that purchasing power parity holds even in the short run. Then, x1 will be determined by the difference in the expected rates of inflation between Japan and the United States as
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
