Covered Interest Parity

[@ichosethisnamefirst]

excellent explanation, i hope my lecturer sees this and realise how bad his slides are..

[@ichosethisnamefirst841]

i too did. See the name

[@alparslankorkmaz2964]

Nicely explained.

[@nawalhaque]

Clear and simple. Excellent explanation.

[@MagnusAnand]

One question. All the countries that try to defend their currency on a crisis, rises the nominal interest rate, so the currency is more attractive for investors. Why they do that? Is like just the opposite to this fórmula?

[@bbeaum1]

Are arbitrage and market forces such that this covered interest parity rule is considered an "iron law" for countries with stable economies and governments ? (those economic and government descriptions would be hard to peg/quantify, I'm sure) Or is it more of a dependable theory that hasn't been disproven?

[@nasound42]

Thank you

[@ntcuong01ct1]

Dear Friends, I have a question: in IRP (Interest Rate Parity), the base rate of the two currencies is the nominal interest rate or the real interest rate announced by the central banks of the two countries?.