Solution-What were the real interest rates in france and

What were the real interest rates in france and germany

Reference no: EM13947547

In early 1996, the short-term interest rate in France was 3.7% and forecast French inflation was 1.8%. At the same time, the short-term German interest rate was 2.6% and forecast German inflation was 1.6%.

a. Based on these figures, what were the real interest rates in France and Germany?

b. To what would you attribute any discrepancy in real rates between France and Germany?

Reference no: EM13947547

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What were the real interest rates in france and germany

Reference no: EM13947547

Reference no: EM13947547

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