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

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

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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? Hi? can you explain it? i do not understand what is the...

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