Exchange Rates, Interest Rates and Commodity Prices - Meher Manzur

Exchange Rates, Interest Rates and Commodity Prices

By: Meher Manzur (Editor)

Hardcover | 1 January 2002

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This volume explores the key issues relating to links between exchange rate instability and domestic inflation, including real exchange rate and interest rate manifestations, and the co-variability of exchange rates and commodity prices. The common theme throughout is the behaviour of asset prices and interest rates in international markets. A number of interrelated questions regarding the interactions of exchange rates, interest rates and commodity prices are posed. These include: why is purchasing power parity invariably controversial; has the link between exchange rates and commodity prices collapsed; and in a world of increasing globalization, why are interest rate movements so poorly correlated across countries? Insights to these and other fundamental questions in international finance are provided by way of empirical analysis. Whilst there remains much that is little understood, the conclusions concerning the validity of the theory of purchasing power parity are becoming more and more reliable.

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