【学习笔记】International Finance 国际金融论研究 学习笔记-30

Part I

Basics ofInternational Finance --30

Ch6 --6

International Parity Relationships

Reasons for Deviations from IRP

1.      Transactions Costs

–There may be bid-ask spreads to overcome.

2.      CapitalControls

–Governmentssometimes restrict import and export of money through taxes or outright bans.

Purchasing Power Parity (PPP) and Exchange Rate Determination