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
Authors:	Minford, Patrick ; Peel, David
Publisher:	Cardiff : Cardiff University, Cardiff Business School
Subject:	Real interest rates \| Real Exchange rates \| Roll

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Series:	Cardiff Economics Working Papers ; E2005/3
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	865239681 [GVK] hdl:10419/83965 [Handle] RePEc:cdf:wpaper:2005/3 [RePEc]
Classification:	F31 - Foreign Exchange ; C22 - Time-Series Models ; C51 - Model Construction and Estimation
Source:	EconStor

Persistent link: https://www.econbiz.de/10010322820