Compare interest rate parity and purchasing power parity

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Reference no: EM13936073

1 Comparing parity theories. Compare and contrast interest rate parity, purchasing power parity (PPP), and the international Fisher effect (IFE).

2. Real interest rate. One assumption made in developing the IFE is that all investors in all countries have the same real interest rate. What does this mean?

Reference no: EM13936073

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