Discuss covered interest rate parity (CIRP) with reference to foreign exchange market efficiency

Diskussion der gedeckten Zinsparitätentheorie bezogen auf Wechselkurs Effizienz

Business & Finance, Economics, Money & Monetary Policy
Cover of the book Discuss covered interest rate parity (CIRP) with reference to foreign exchange market efficiency by Sascha Kurth, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Sascha Kurth ISBN: 9783640812806
Publisher: GRIN Publishing Publication: January 28, 2011
Imprint: GRIN Publishing Language: English
Author: Sascha Kurth
ISBN: 9783640812806
Publisher: GRIN Publishing
Publication: January 28, 2011
Imprint: GRIN Publishing
Language: English

Scientific Essay from the year 2010 in the subject Economics - Monetary theory and policy, grade: 1,0, University of Hull, course: International Finance, language: English, abstract: Die Arbeit untersucht und erläutert die verschiedenen wissenschaftlichen Ergebnisse von renommierten Untersuchungen. The covert interest rate parity is a well-established theory model, which holds not 100%, but the principle hold nearly for most of the time in highly developed countries. The CIRP theory cares for more efficient exchange markets. However, in unstable or crisis situations the CIRP is more susceptible, it is also in developing countries with factors such as political risk, credit risk or the lack of information. Then the CIRP could not hold, this means the exchange markets can be inefficient, for reasons like a lack of information, the markets can be still efficient because they are above risks and have been incorporated, Keynes assumes in his original theory that deviations of 0.5% percent for investors due to rate adjustments during trading and transaction costs, margin becomes smaller and smaller during the time at last due to the information technology and the associated ever-faster trade opportunities and reduces transaction costs ensure more that the CIRP holds better. However the information technology just reduces the deviations, but do not influence factors like default risks or opportunity costs.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Scientific Essay from the year 2010 in the subject Economics - Monetary theory and policy, grade: 1,0, University of Hull, course: International Finance, language: English, abstract: Die Arbeit untersucht und erläutert die verschiedenen wissenschaftlichen Ergebnisse von renommierten Untersuchungen. The covert interest rate parity is a well-established theory model, which holds not 100%, but the principle hold nearly for most of the time in highly developed countries. The CIRP theory cares for more efficient exchange markets. However, in unstable or crisis situations the CIRP is more susceptible, it is also in developing countries with factors such as political risk, credit risk or the lack of information. Then the CIRP could not hold, this means the exchange markets can be inefficient, for reasons like a lack of information, the markets can be still efficient because they are above risks and have been incorporated, Keynes assumes in his original theory that deviations of 0.5% percent for investors due to rate adjustments during trading and transaction costs, margin becomes smaller and smaller during the time at last due to the information technology and the associated ever-faster trade opportunities and reduces transaction costs ensure more that the CIRP holds better. However the information technology just reduces the deviations, but do not influence factors like default risks or opportunity costs.

More books from GRIN Publishing

Cover of the book Violence and Consumerism in Bret Easton Ellis's 'American Psycho' and Chuck Palahniuk's 'Fight Club' by Sascha Kurth
Cover of the book The Revolutionary Spirit? Egalitarianism and Elitism in Melville's 'White Jacket' by Sascha Kurth
Cover of the book An Analysis of the Usage and Effect of Presupposition and Entailment in Isaac Marion's Novel 'Warm Bodies' by Sascha Kurth
Cover of the book Civil Rights Movement of the USA in the 1960s by Sascha Kurth
Cover of the book Prisoner of War - A controversial status by Sascha Kurth
Cover of the book Which Goal should be followed by a Corporate Executive? by Sascha Kurth
Cover of the book Schwerpunktbezogene Diskussion über das 'Health Belief Modell' im Bezug auf sporttherapeutische Konsequenzen by Sascha Kurth
Cover of the book Are schools safe? Anti-bullying practices in primary schools in contemporary Serbia by Sascha Kurth
Cover of the book US-American folk music and its political stances from the great depression to the present by Sascha Kurth
Cover of the book Understanding Generational Succession challenges in German Family Businesses by Sascha Kurth
Cover of the book Confronting Human Rights violations in Argentinean, Chilean and Venezuelan prisons by Sascha Kurth
Cover of the book African American Slavery in the Antebellum Period by Sascha Kurth
Cover of the book The morpheme - An approach to its meaning and function by Sascha Kurth
Cover of the book Francis Daniel Pastorius and his image of America in the late 17th century by Sascha Kurth
Cover of the book A Brief Introduction to the UK Sponsorship Industry by Sascha Kurth
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy