Mahieu, Ronald; Huisman, Huisman, R. - Erasmus Research Institute of Management (ERIM), … - 2007
In this paper, we examine in which periods uncovered interest rate parity was likely to hold. Empirical research has shown mixed evidence on UIP. The main finding is that it doesn’t hold, although some researchers were not able to reject UIP in periods with large interest differentials or high...