What is the relative importance of stock adjustments in financial assets as compared with adjustments in trade flows for exchange rate changes in the short run and in the long run according to the portfolio approach ...

The condition for uncovered interest parity is i i EARP the interest rate in the ho ...

What is the relative importance of stock adjustments in financial assets as compared with adjustments in trade

Question:

What is the relative importance of stock adjustments in financial assets as compared with adjustments in trade flows for changes in the short run and in the long run according to the approach?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...