On the equality of Real Interest Rates across borders in Integrated Capital Markets

The purpose in this letter is first to review briefly the empirical results on the relationship between real interest rates and real exchange rates; this empirical literature provides little support for the hypothesis of Roll that expected real interest rates are equal in general. Our second aim is to discuss the theoretical conditions that have to be met for his hypothesis to hold.

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Year of publication:	2005-11
Authors:	Minford, A. Patrick L. ; Peel, David A.
Institutions:	Economics Section, Cardiff Business School
Subject:	Real interest rates \| Real Exchange rates \| Roll

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Extent:	application/pdf
Series:	Cardiff Economics Working Papers. - ISSN 1749-6101.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Published in <i>Open Economies Review</i>, <b>18</b>(1), 2007 Number E2005/3 9 pages
Classification:	F31 - Foreign Exchange ; C22 - Time-Series Models ; C51 - Model Construction and Estimation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005509748