TopicIIBInternationalParityRelations.pptVIP

 Topic IIB: International Parity Relations Outline Introduction Forward Contracts Interest Rate Parity Purchasing Power Parity International Fisher Relation I. Introduction International parity conditions provide the relation between interest rates, exchange rates and inflation between two countries. They are the cornerstone of international finance, and the basis behind understanding international fixed income. Four main results: Covered and uncovered interest rate parity International Fisher relation Purchasing power parity International Parity Conditions I