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

What are floating rate notes, What are floating rate notes? Explain the var...

What are floating rate notes? Explain the various types of FRNS FRNs are bonds that do not carry a fixed rate of interest. The various forms of FRNs are : Perpectual FRN Minmax

Is there is liquidity in the international monetary system, Is there is Liq...

Is there is Liquidity in the international monetary system

Hospital manager function, Hospital Manager Function The manager of th...

Hospital Manager Function The manager of the hospital in IMC is responsible for many things: • Follow-up to the orderly conduct of work at the hospital to achieve high qual

Inflation can be imported from abroad unless exchange rates, Q. Use the II ...

Q. Use the II - XX framework in order to show graphically how inflation can be imported from abroad unless exchange rates are adjusted. Answer: Suppose that the home economy is

Explain the difference between given expressions, Q. Explain the difference...

Q. Explain the difference between the following two expressions: Y = C(Y d ) + I + G + CA(EP*/P, Y d ) and Y = C + I +G + CA Answer: The first expression corresponds to a

Relationship b/w u.s. real money supply and dollar exchange, To answer the ...

To answer the following question, please refer to the figure below.Concentrating only at the lower left quadrant, discuss the relationship between the U.S. real money supply and th

Theory of consumer behavior, Q. Write about the assumptions of the theory o...

Q. Write about the assumptions of the theory of consumer behavior based on the cardinal utility approach. 1. Rationality- It is assumed that the consumer is a rational being in

International economics, "1. Describe the important benefits enjoyed by...

"1. Describe the important benefits enjoyed by Indian companies through TRIPs. Elaborate the main objectives of WTO in global economy. 2. "Leontiff paradox is proved in th

Low-inflation reputation, Q. Explain how the German Bundesbank gain...

Q. Explain how the German Bundesbank gained its low-inflation reputation. Answer: Essentially Germany's experience with hyperinflation in the 1920s and yet again aft

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