IMF Working Paper Series
Выпуск N99/141 за 1999 год
Опубликовано на портале: 10-12-2003
Francisko Nadal-De Simon, W.A Razzak
IMF Working Paper Series.
1999.
No. 99/141.
This paper reexamines some unsettled theoretical and empirical issues regarding the
relationship between nominal exchange rates and interest rate differentials and provides
a model for the behavior of exchange rates in the long run, where interest rates
are determined in the bond market. The model predicts that an increase in the interest
rate differential appreciates the home currency. We test the model for the U.S. dollar
against the Deutsche mark, the British pound, the Japanese yen, and the Canadian
dollar. The first two pairs of exchange rates—for which purchasing power parity

