Question: Use The Wall Street Journal or another data source to record the interest rate differential between the interest rate of Mexico and the U.S. rate
Use The Wall Street Journal or another data source to record the interest rate differential between the interest rate of Mexico and the U.S. rate over the last five or so quarters. Then, review the exchange rate percentage change in the Mexican peso over each of those corresponding quarters to determine whether the international Fisher effect (IFE) appears to hold over those quarters for that currency.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
