This article describes the relationship between inflation, exchange rates and interest rates in the international situation. Students are introduced to the basic ideas that are illustrated with data from four countries. The note highlights the management implications of these relationships and their importance for the prediction of exchange rates. This is useful as both a background reading in addition to the cases, and in preparation for a lecture on the subject.
This Darden study. "Hide
by Robert S. Harris Source: Darden School of Business 11 pages. Publication Date: September 3, 1996. Prod. #: UV0390-PDF-ENG
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