Tag: Fischer Relationship

• FX Dynamics

  

  Two competing forces in FX markets: Interest Rate Parity and Hot Money Interest Rate Parity states that a lower yielding currency should appreciate relative to a higher yielding currency. According to the International Fischer Relationship, higher yielding currencies have higher inflation domestically. This inflation difference causes the high yielding currency to depreciate relative to a…

  Thomas Schleusener

  April 3, 2018

  Markets, Non-Fiction

  CHF, CIP, EUR, Fischer Relationship, FX, germany, inflation, Interest rate parity, interest rates, PPP, Purchasing Power Parity, s&p 500, spx, USD