On the long and short run relationship between the forward rate and the interest parity
Publication
, Journal Article
Pedersson, G; Tower, E
Published in: Journal of Macroeconomics
January 1, 1979
The interest parity theory postulates that a one percentage point increase in the interest differential favoring a currency will be accompanied by an increase in the discount on that currency in the forward market of one percentage point as well. Using Canadian data we find that the forward rate responds to the interest differential with a lag. Moreover, a unit increase in the differential favoring the U.S. was accompanied in the long run by a rise in the discount on the forward U. S. dollar which was not significantly different from unity. © 1979.
Duke Scholars
Published In
Journal of Macroeconomics
DOI
ISSN
0164-0704
Publication Date
January 1, 1979
Volume
1
Issue
1
Start / End Page
65 / 77
Related Subject Headings
- Economics
- 1402 Applied Economics
- 1401 Economic Theory
Citation
APA
Chicago
ICMJE
MLA
NLM
Pedersson, G., & Tower, E. (1979). On the long and short run relationship between the forward rate and the interest parity. Journal of Macroeconomics, 1(1), 65–77. https://doi.org/10.1016/0164-0704(79)90021-1
Pedersson, G., and E. Tower. “On the long and short run relationship between the forward rate and the interest parity.” Journal of Macroeconomics 1, no. 1 (January 1, 1979): 65–77. https://doi.org/10.1016/0164-0704(79)90021-1.
Pedersson G, Tower E. On the long and short run relationship between the forward rate and the interest parity. Journal of Macroeconomics. 1979 Jan 1;1(1):65–77.
Pedersson, G., and E. Tower. “On the long and short run relationship between the forward rate and the interest parity.” Journal of Macroeconomics, vol. 1, no. 1, Jan. 1979, pp. 65–77. Scopus, doi:10.1016/0164-0704(79)90021-1.
Pedersson G, Tower E. On the long and short run relationship between the forward rate and the interest parity. Journal of Macroeconomics. 1979 Jan 1;1(1):65–77.
Published In
Journal of Macroeconomics
DOI
ISSN
0164-0704
Publication Date
January 1, 1979
Volume
1
Issue
1
Start / End Page
65 / 77
Related Subject Headings
- Economics
- 1402 Applied Economics
- 1401 Economic Theory