Jetter, Michael; Nikolsko-Rzhevskyy, Alex - UNIVERSIDAD EAFIT - 2013
update their expectations, eventually restoring the parity. It is in this adjustment period, when the forward discount puzzle … the US dollar. Results indicate that the forward discount puzzle loses signi cance after allowing for an adjustment period … discount puzzle. We build a theoretical model suggesting that violations of the uncovered interest rate parity are owed to …