Uncovered interest parity with fundamentals: a Brazilian exchange rate forecast model

2002 ◽  
pp. 191-207
Author(s):  
Marcelo Kfoury Muinhos ◽  
Paulo Springer de Freitas ◽  
Fabio Araujo
Keyword(s):  
Exchange Rate ◽  
Forecast Model ◽  
Uncovered Interest Parity ◽  
Interest Parity ◽  
Exchange Rate Forecast

scholarly journals The uncovered interest parity puzzle, exchange rate forecasting, and Taylor rules

2019 ◽  
Vol 95 ◽  
pp. 317-331 ◽  
Author(s):  
Charles Engel ◽  
Dohyeon Lee ◽  
Chang Liu ◽  
Chenxin Liu ◽  
Steve Pak Yeung Wu
Keyword(s):  
Exchange Rate ◽  
Uncovered Interest Parity ◽  
Exchange Rate Forecasting ◽  
Taylor Rules ◽  
Interest Parity

scholarly journals Testing the interest-parity condition with Irving Fisher's example of Indian rupee and sterling bonds in the London financial market, 1869–1906

2019 ◽  
Vol 26 (1) ◽  
pp. 21-42 ◽  
Author(s):  
Nils Herger
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Financial Market ◽  
Close Correlation ◽  
Uncovered Interest Parity ◽  
Indian Rupee ◽  
Interest Parity ◽  
Default Risks ◽  
Exchange Rate Changes ◽  
Parity Condition

Following the pioneering work of Irving Fisher, this article assesses the uncovered interest-parity (UIP) condition by comparing Indian interest and exchange rates during the 1869 to 1906 period. The Indian case provides a good example of the UIP condition, since Indian rupee and sterling bonds were simultaneously traded in the London financial market and subject to negligible default risks. Large deviations from the UIP condition arose when India suffered from pervasive levels of uncertainty about the future of its silver-based currency system. Otherwise, a relatively close correlation arises between sterling-to-rupee interest-rate differences and exchange-rate changes.

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