Exchange Rate Relationships
Example
If inflation in the US is forecasted at 2.0%
this year and Japan is forecasted to fall
2.5%, what do we know about the expected
spot rate?
Given a spot rate of 112.645yen:$1
Exchange Rate Relationships
Example
If inflation in the US is forecasted at 2.0%
this year and Japan is forecasted to fall
2.5%, what do we know about the expected
spot rate?
Given a spot rate of 112.645yen:$1