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Annual inflation rates of the united states and japan

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Reference no: EM132271996

Suppose the spot and three-month forward rates for the yen are ¥79.55 and ¥78.92, respectively.

What would you estimate is the difference between the annual inflation rates of the United States and Japan? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Inflation rate differential ________ % 

Reference no: EM132271996

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