TREASURY MANAGEMENT

For instance, if the UK has an inflation rate of 2% and the US has an inflation rate of 4%, the Pound will appreciate against the Dollar by 2% per year. Relative PPP is found to hold for long-term exchange rate determination when inflation differences between countries are large. Two factors that have to hold for PPP to work (pg 53) ................
................

In order to avoid copyright disputes, this page is only a partial summary.