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 Kosten und Nutzen von Portalen im Unternehmen by Sascha Kurth
Cover of the book 'Making a change?!' - Between Grassroots and Commercialisation in Contemporary American Rap Music by Sascha Kurth
Cover of the book Is a publicly traded, institutionalized private equity organization sustainable? by Sascha Kurth
Cover of the book Potential Benefits And Limitation Of Adopting The IFRS For Germany by Sascha Kurth
Cover of the book Deductive, Systematic Signal Validation as Method for Efficacy Improvement in Pharmaco- and Chemo-Vigilance by Sascha Kurth
Cover of the book The Construction of the Plot in `King Lear´ by Sascha Kurth
Cover of the book Jacob Riis - Analyse und Interpretation ausgewählter Fotografien by Sascha Kurth
Cover of the book Traditional use of plant resources by bankariya ethnic group in Makawanpur district, central Nepal by Sascha Kurth
Cover of the book The national question in contemporary Hungarian politics by Sascha Kurth
Cover of the book The Challenges of Development Cooperation: How to Increase the Efficiency of Aid by Sascha Kurth
Cover of the book Telephone Conversations From A Conversation Analysis Perspective by Sascha Kurth
Cover of the book Character Traits and Function of Charles Bentham in Sean O'Casey's 'Juno and the Paycock' by Sascha Kurth
Cover of the book The Efficient Market Hypothesis and its Validity in Today's Markets by Sascha Kurth
Cover of the book How Jewish is the Jew of Malta? by Sascha Kurth
Cover of the book Jugend und Jugendkulturen im 21. Jahrhundert 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