International Parity Conditions

LOS e. explain international parity conditions (covered and uncovered interest rate parity, forward rate parity, purchasing power parity, and the international Fisher effect);

LOS f. describe relations among the international parity conditions;

LOS g. evaluate the use of the current spot rate, the forward rate, purchasing power parity, and uncovered interest parity to forecast future spot exchange rates;

LOS h. explain approaches to assessing the long-run fair value of an exchange rate;

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