Formular chap 9 - = IPUS IPF ∆SUS FSUS F SUS F spot ex rate of US dollar for foreign currencies IRP =-iUS iUK1 iUK F SS(F forward ex rate at the

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Net exposure i = (FX assets i – FX liabilities i ) + (FX bought i – FX sold i ) = Net foreign assets i + Net FX bought i = Net position i (i = ith country’s currency) PPP = + iUS IPUS RIRUS (IP: inflation rate, RIR: real interest rate)
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Unformatted text preview: - = / / IPUS IPF ∆SUS FSUS F ( / : SUS F spot ex rate of US dollar for foreign currencies ) IRP-+ = -iUS iUK1 iUK F SS (F: forward ex rate at the time t)...
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This note was uploaded on 07/03/2011 for the course ECON 101 taught by Professor Ramiz during the Spring '11 term at Abilene Christian University.

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