How can you use interest rate differentials to understand the probability of a devaluation and the potential

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How can you use interest rate differentials to understand the probability of a devaluation and the potential magnitude of the devaluation?

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International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

Question Posted: May 28, 2012 03:36 AM

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How can you use interest rate differentials to understand the probability of a devaluation and the potential

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In a fixed exchange rate regime the interest differential provides information about the probability of the devaluation multiplied by the magnitude of ...View the full answer

International Financial Management

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