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Concluding Remarks

  • Imad A. Moosa
  • Razzaque H. Bhatti

Abstract

The objective of this book has been to survey the theoretical and empirical work on the four international parity conditions: PPP, CIP, UIP and RIP. An understanding of the theory and empirical validity of these conditions is critical to our understanding of international linkages among the markets for goods, capital and foreign exchange as well as the determination of exchange rates and the movement of interest rates. The importance of these conditions is not only pertinent to the macro side of the economy, but also to the micro side. These conditions have significant implications for the investment, financing and hedging decisions of corporations operating in an international environment and having access to multi-currency sources of funds.

Keywords

Real Interest Rate Capital Mobility Nominal Interest Rate Nominal Exchange Rate Consensus View 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Imad A. Moosa and Razzaque H. Bhatti 1997

Authors and Affiliations

  • Imad A. Moosa
    • 1
  • Razzaque H. Bhatti
    • 2
  1. 1.La Trobe UniversityAustralia
  2. 2.University of Azad Jammu and KashmirPakistan

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