Discuss covered interest rate parity (CIRP) with reference to foreign exchange market efficiency

Diskussion der gedeckten Zinsparitätentheorie bezogen auf Wechselkurs Effizienz

Business & Finance, Economics, Money & Monetary Policy
Cover of the book Discuss covered interest rate parity (CIRP) with reference to foreign exchange market efficiency by Sascha Kurth, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Sascha Kurth ISBN: 9783640812806
Publisher: GRIN Publishing Publication: January 28, 2011
Imprint: GRIN Publishing Language: English
Author: Sascha Kurth
ISBN: 9783640812806
Publisher: GRIN Publishing
Publication: January 28, 2011
Imprint: GRIN Publishing
Language: English

Scientific Essay from the year 2010 in the subject Economics - Monetary theory and policy, grade: 1,0, University of Hull, course: International Finance, language: English, abstract: Die Arbeit untersucht und erläutert die verschiedenen wissenschaftlichen Ergebnisse von renommierten Untersuchungen. The covert interest rate parity is a well-established theory model, which holds not 100%, but the principle hold nearly for most of the time in highly developed countries. The CIRP theory cares for more efficient exchange markets. However, in unstable or crisis situations the CIRP is more susceptible, it is also in developing countries with factors such as political risk, credit risk or the lack of information. Then the CIRP could not hold, this means the exchange markets can be inefficient, for reasons like a lack of information, the markets can be still efficient because they are above risks and have been incorporated, Keynes assumes in his original theory that deviations of 0.5% percent for investors due to rate adjustments during trading and transaction costs, margin becomes smaller and smaller during the time at last due to the information technology and the associated ever-faster trade opportunities and reduces transaction costs ensure more that the CIRP holds better. However the information technology just reduces the deviations, but do not influence factors like default risks or opportunity costs.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Scientific Essay from the year 2010 in the subject Economics - Monetary theory and policy, grade: 1,0, University of Hull, course: International Finance, language: English, abstract: Die Arbeit untersucht und erläutert die verschiedenen wissenschaftlichen Ergebnisse von renommierten Untersuchungen. The covert interest rate parity is a well-established theory model, which holds not 100%, but the principle hold nearly for most of the time in highly developed countries. The CIRP theory cares for more efficient exchange markets. However, in unstable or crisis situations the CIRP is more susceptible, it is also in developing countries with factors such as political risk, credit risk or the lack of information. Then the CIRP could not hold, this means the exchange markets can be inefficient, for reasons like a lack of information, the markets can be still efficient because they are above risks and have been incorporated, Keynes assumes in his original theory that deviations of 0.5% percent for investors due to rate adjustments during trading and transaction costs, margin becomes smaller and smaller during the time at last due to the information technology and the associated ever-faster trade opportunities and reduces transaction costs ensure more that the CIRP holds better. However the information technology just reduces the deviations, but do not influence factors like default risks or opportunity costs.

More books from GRIN Publishing

Cover of the book Gender Roles in the Eighteenth Century Represented in the Story of Mary Blandy by Sascha Kurth
Cover of the book Didaktischer Entwurf einer Einheit zum Thema 'Zachäus' by Sascha Kurth
Cover of the book Social Amnesia and the Eclipse of History in New Zealand School Syllabi 1947-2002 by Sascha Kurth
Cover of the book Ethics as an Ascetic Experience - Power, Language and the Ambiguity of the Visible in Michel Foucault by Sascha Kurth
Cover of the book The immigration of German Jews in America in the first half of the 19th century by Sascha Kurth
Cover of the book The Welfare Regime Debate and Health Care Provision by Sascha Kurth
Cover of the book Organizational behaviour. Google corporate culture in perspective by Sascha Kurth
Cover of the book The February 2011 UN veto of Russia and China in the Syria case by Sascha Kurth
Cover of the book Online advertising as transnational communication by Sascha Kurth
Cover of the book Risk-Adjusted Return on Capital as a Concept in Value-Based Logistics Management by Sascha Kurth
Cover of the book Jews in Iran since the revolution of 1979 by Sascha Kurth
Cover of the book The impact of corruption on development and economic performance by Sascha Kurth
Cover of the book Personal Intelligent User Interfaces 2008 - Development of a methodology framework to evaluate technologies in order to define high potential use cases by Sascha Kurth
Cover of the book Globalisation and the Soviet Union by Sascha Kurth
Cover of the book Cognitive metaphor as a deeply Ingrained device of computer and internet language by Sascha Kurth
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy