14 - Exchange Rates: Monetary Approach in the Long Run
Wednesday, February 09, 2011
14.2 - Money, Prices, and Exchange Rates in the Long Run: Money Market Equilibrium in a
What determines P levels?
Monetary Theory Prices are determine
13.3 - Market for Foreign Exchange
13.5 - Arbitrage and Interest Rates
Which currency should investors use to keep their liquid cash balances?
2% on Euro
Per year 4% on Dollar
Key Issue: problem of RISK
1.The returns on those deposits are paid in the