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Why is uncovered interest parity called uncovered? Does it have to hold? what assumptions are needed? How does it compare to covered interest parity?

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1 Theory and Empirics of Interest Parity State the uncovered and the covered interst parity conditions. 1. Why is uncovered interest parity called uncovered? Does it have to hold? what assumptions are needed? How does it compare to covered interest parity? 2. The USD 3-month deposit (interest) rate and the GBP 3-month deposit rate are […]

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