The Uncovered Interest Parity and the Peso Problem
5 Pages Posted: 18 May 2000
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The Uncovered Interest Parity and the Peso Problem
Abstract
This paper verifies the uncovered interest parity to Brazilian economy. The main finding is that under fixed exchange rate the uncovered interesty parity fails. This confirms the theoretical point proposed by Krasker (1980).
Keywords: uncovered interest parity, peso problem
JEL Classification: F21
Suggested Citation: Suggested Citation
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