Huisman, R.; Mahieu, R.J.; Mulder, A. - Erasmus Research Institute of Management (ERIM), ERIM … - 2007
According to uncovered interest rate Parity (UIP), the expected relative change in an exchange rate is equal to the difference between interest rates between the two currencies. Empirically, UIP is frequently rejected. In this paper, we examine whether exchange rates have at least any tendency...