Effects of german unification on germanys interest rate, International Economics

Assignment Help:

Q. Explain the purpose of the following figure. Show the effects of German unification on Germany's interest rate.

1183_Effects of German unification on Germanys interest rate.png


Answer: The major purpose is to show that different interest rates exist for different assets since foreign currencies are different assets. From 1990 to 1995 the DM interest rate is elevated than that of the United States. Exclusive of this period the dollar rates are higher reflecting higher inflation in the United States and depreciating of the dollar versus the German currency.


Related Discussions:- Effects of german unification on germanys interest rate

Income distribution, argument about fair distribution of income and gnp as ...

argument about fair distribution of income and gnp as a measurment of economic growth

Analysis of an international relations, International Relations (IR) G...

International Relations (IR) Goal : The goal of this writing assignment is for you to hone your skills in identifying accuracy or bias in movies or in "alternative" documentar

Source of comparative advantage, The Source of Comparative Advantage can be...

The Source of Comparative Advantage can be understood as follows: The source of comparative advantage could be productivity differential (Ricardo) or differences in the factor

Ricardos classic demonstration of the effects and sources, Q. It is argued...

Q. It is argued that the United States could be foolish to maintain a free-trade stance in a world in which all other countries exploit prisoner or child labor, or are protectioni

Modes of Entry and Internalisation, Although the elegance and comprehensive...

Although the elegance and comprehensiveness of transactions costs reasoning has provided the internalisation approach with a powerful logic (Rugman, 1981, 1985), it is still defici

Rasons for economic miracle of east asian countries, Q. Illustrate the rea...

Q. Illustrate the reasons for the economic "miracle" of the East Asian countries between 1960 and 1997. Is it only due to the common Asian practice of industrial policy and busin

Free trade, what are the limitations of net barter terms of trade

what are the limitations of net barter terms of trade

Explain how a rise in real income affects aggregate demand, Q. Expl...

Q. Explain how a rise in real income affects aggregate demand. Answer: An increase in domestic real income Y leads to a rise in disposable income Yd. This increases

Title..Haberler''s theory of oppotunity cost, Explain about constant,increa...

Explain about constant,increasing and decreasing opportunity cost

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd