Interest rate parity (IRP) is a theory that the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate.

Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate Ex-post deviations from uncovered interest parity (UIP ... differential plus ...

Despite the recent stabilization and modest recovery in the dollar’s fortunes, economists remain pessimistic on the outlook ...

Hitting parity is psychologically significant for ... They do take exchange rate movements into account when they set interest rates, but direct intervention to support the euro is extremely ...

The Federal Reserve held interest rates steady Wednesday between 4.25% and 4.5% – exactly as interest-rate traders' bets had predicted a month ago. The traders' bets are now predicting there's ...

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation We study the behavior of Covered Interest Parity (CIP) deviations – aka ... s lies in measuring local currency interest ...

The Federal Reserve recently cut interest rates for the first time in four years. Interest rate cuts make mortgage, automobile and other loans more affordable. Economists expect more interest rate ...