internatinal_finance_CIRP_analysis.docxVIP

Index PageSection 1:Introduction2Section 2:Data 3Section 3:CIRP analysis without transaction costs6Section 4: CIRP analysis with transaction costs and without transaction costs 12Section 5: Further consideration and limits17Section 6 : Conclusion18Section 7: References 19 Introduction At the beginning of the assignment we will provide a brief background on the Interest Rate Parity Theory . The theory is initially proposed in “A track on Monetary Reform”(1923) by John Maynard Keynes . Accordin