Series: IMF Working Papers
Author(s): Peter Isard
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 April 2006
Keywords: unbiasedness hypothesis, exchange risk premium, exchange rate, foreign exchange, exchange rate expectations, spot exchange rate, Open Economy Macroeconomics,
This paper provides an overview of the uncovered interest parity assumption. It traces the history of the interest parity concept, summarizes evidence on the empirical validity of uncovered interest parity, and dis...