If you return to Figure 9-4, you will notice that London Eurodollar interest rates tend to exceed
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If you return to Figure 9-4, you will notice that London Eurodollar interest rates tend to exceed U.S. certificate of deposit rates after the global financial crisis, but not before. Why do you think this is the case?
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Percent per year 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 -0.1 London three-month Eurodollar rate less U.S. three-month certificate of deposit rate.
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Related Book For
International Finance Theory and Policy
ISBN: 978-0133423648
10th edition
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
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