Inflation expectations are usually obtained from the swaps market or from the so called inflation insurance. Often times both measures give similar results, however, given the difference in the settlement structure these results may differ. This document presents the settlement structure of...

Wide interest rate differentials between economies may generate attractive investment opportunities. However, these operations could cause major disruptions in foreign exchange markets, such as excessive volatility in the exchange rate due to overexposure to speculative flows. The investment...