Matches in DBpedia 2015-10 for { <http://dbpedia.org/resource/Interest_rate_parity> ?p ?o }
- Interest_rate_parity abstract "Interest rate parity is a no-arbitrage condition representing an equilibrium state under which investors will be indifferent to interest rates available on bank deposits in two countries. The fact that this condition does not always hold allows for potential opportunities to earn riskless profits from covered interest arbitrage. Two assumptions central to interest rate parity are capital mobility and perfect substitutability of domestic and foreign assets. Given foreign exchange market equilibrium, the interest rate parity condition implies that the expected return on domestic assets will equal the exchange rate-adjusted expected return on foreign currency assets. Investors then cannot earn arbitrage profits by borrowing in a country with a lower interest rate, exchanging for foreign currency, and investing in a foreign country with a higher interest rate, due to gains or losses from exchanging back to their domestic currency at maturity. Interest rate parity takes on two distinctive forms: uncovered interest rate parity refers to the parity condition in which exposure to foreign exchange risk (unanticipated changes in exchange rates) is uninhibited, whereas covered interest rate parity refers to the condition in which a forward contract has been used to cover (eliminate exposure to) exchange rate risk. Each form of the parity condition demonstrates a unique relationship with implications for the forecasting of future exchange rates: the forward exchange rate and the future spot exchange rate.Economists have found empirical evidence that covered interest rate parity generally holds, though not with precision due to the effects of various risks, costs, taxation, and ultimate differences in liquidity. When both covered and uncovered interest rate parity hold, they expose a relationship suggesting that the forward rate is an unbiased predictor of the future spot rate. This relationship can be employed to test whether uncovered interest rate parity holds, for which economists have found mixed results. When uncovered interest rate parity and purchasing power parity hold together, they illuminate a relationship named real interest rate parity, which suggests that expected real interest rates represent expected adjustments in the real exchange rate. This relationship generally holds strongly over longer terms and among emerging market countries.".
- Interest_rate_parity thumbnail Uncovered-interest-rate-parity.svg?width=300.
- Interest_rate_parity wikiPageID "2406246".
- Interest_rate_parity wikiPageLength "23523".
- Interest_rate_parity wikiPageOutDegree "67".
- Interest_rate_parity wikiPageRevisionID "657393336".
- Interest_rate_parity wikiPageWikiLink 2007–2012_global_financial_crisis.
- Interest_rate_parity wikiPageWikiLink Arbitrage.
- Interest_rate_parity wikiPageWikiLink Asset.
- Interest_rate_parity wikiPageWikiLink Assets.
- Interest_rate_parity wikiPageWikiLink Capital_control.
- Interest_rate_parity wikiPageWikiLink Capital_mobility.
- Interest_rate_parity wikiPageWikiLink Carry_(investment).
- Interest_rate_parity wikiPageWikiLink Carry_trade.
- Interest_rate_parity wikiPageWikiLink Category:Financial_economics.
- Interest_rate_parity wikiPageWikiLink Category:Financial_terminology.
- Interest_rate_parity wikiPageWikiLink Category:Foreign_exchange_market.
- Interest_rate_parity wikiPageWikiLink Category:International_finance.
- Interest_rate_parity wikiPageWikiLink Cointegration.
- Interest_rate_parity wikiPageWikiLink Correlation.
- Interest_rate_parity wikiPageWikiLink Correlation_and_dependence.
- Interest_rate_parity wikiPageWikiLink Covered_interest_arbitrage.
- Interest_rate_parity wikiPageWikiLink Credit_risk.
- Interest_rate_parity wikiPageWikiLink Currency_appreciation_and_depreciation.
- Interest_rate_parity wikiPageWikiLink Demand_deposit.
- Interest_rate_parity wikiPageWikiLink Depreciation_(currency).
- Interest_rate_parity wikiPageWikiLink Deutsche_Mark.
- Interest_rate_parity wikiPageWikiLink Deutsche_mark.
- Interest_rate_parity wikiPageWikiLink Economic_equilibrium.
- Interest_rate_parity wikiPageWikiLink Efficient-market_hypothesis.
- Interest_rate_parity wikiPageWikiLink Emerging_markets.
- Interest_rate_parity wikiPageWikiLink Empirical_evidence.
- Interest_rate_parity wikiPageWikiLink European_Central_Bank.
- Interest_rate_parity wikiPageWikiLink European_Union.
- Interest_rate_parity wikiPageWikiLink Eurozone.
- Interest_rate_parity wikiPageWikiLink Exchange_rate.
- Interest_rate_parity wikiPageWikiLink Exogenous.
- Interest_rate_parity wikiPageWikiLink Exogeny.
- Interest_rate_parity wikiPageWikiLink Federal_Reserve_System.
- Interest_rate_parity wikiPageWikiLink Fee.
- Interest_rate_parity wikiPageWikiLink Financial_crisis_of_2007–08.
- Interest_rate_parity wikiPageWikiLink Financial_regulation.
- Interest_rate_parity wikiPageWikiLink Financial_risk.
- Interest_rate_parity wikiPageWikiLink Foreign_exchange_derivative.
- Interest_rate_parity wikiPageWikiLink Foreign_exchange_market.
- Interest_rate_parity wikiPageWikiLink Foreign_exchange_risk.
- Interest_rate_parity wikiPageWikiLink Foreign_exchange_spot.
- Interest_rate_parity wikiPageWikiLink Foreign_exchange_swap.
- Interest_rate_parity wikiPageWikiLink Forward_contract.
- Interest_rate_parity wikiPageWikiLink Forward_exchange_rate.
- Interest_rate_parity wikiPageWikiLink Free_trade_debate.
- Interest_rate_parity wikiPageWikiLink Germany.
- Interest_rate_parity wikiPageWikiLink Interest_rate.
- Interest_rate_parity wikiPageWikiLink International_Fisher_effect.
- Interest_rate_parity wikiPageWikiLink Market_liquidity.
- Interest_rate_parity wikiPageWikiLink Maturity_(finance).
- Interest_rate_parity wikiPageWikiLink Maurice_Obstfeld.
- Interest_rate_parity wikiPageWikiLink Peseta.
- Interest_rate_parity wikiPageWikiLink Political_risk.
- Interest_rate_parity wikiPageWikiLink Pound_sterling.
- Interest_rate_parity wikiPageWikiLink Purchasing_power_parity.
- Interest_rate_parity wikiPageWikiLink Rate_of_return.
- Interest_rate_parity wikiPageWikiLink Real_interest_rate.
- Interest_rate_parity wikiPageWikiLink Regime_change.
- Interest_rate_parity wikiPageWikiLink Spanish_peseta.
- Interest_rate_parity wikiPageWikiLink Spot_exchange_rate.
- Interest_rate_parity wikiPageWikiLink Statistical_hypothesis_testing.
- Interest_rate_parity wikiPageWikiLink Substitute_good.
- Interest_rate_parity wikiPageWikiLink Tax.
- Interest_rate_parity wikiPageWikiLink Transaction_cost.
- Interest_rate_parity wikiPageWikiLink Uncovered_interest_arbitrage.
- Interest_rate_parity wikiPageWikiLink United_Kingdom.
- Interest_rate_parity wikiPageWikiLink United_States.
- Interest_rate_parity wikiPageWikiLink File:Covered-interest-rate-parity.svg.
- Interest_rate_parity wikiPageWikiLink File:Uncovered-interest-rate-parity.svg.
- Interest_rate_parity wikiPageWikiLinkText "Covered interest rate parity".
- Interest_rate_parity wikiPageWikiLinkText "Interest rate parity".
- Interest_rate_parity wikiPageWikiLinkText "Interest rate parity#Covered interest rate parity".
- Interest_rate_parity wikiPageWikiLinkText "Interest rate parity#Uncovered interest rate parity".
- Interest_rate_parity wikiPageWikiLinkText "Interest_rate_parity#Uncovered_interest_rate_parity".
- Interest_rate_parity wikiPageWikiLinkText "Uncovered interest rate parity".
- Interest_rate_parity wikiPageWikiLinkText "covered interest rate parity".
- Interest_rate_parity wikiPageWikiLinkText "interest rate parity".
- Interest_rate_parity wikiPageWikiLinkText "uncovered interest rate parity".
- Interest_rate_parity hasPhotoCollection Interest_rate_parity.
- Interest_rate_parity wikiPageUsesTemplate Template:Good_article.
- Interest_rate_parity wikiPageUsesTemplate Template:Reflist.
- Interest_rate_parity subject Category:Financial_economics.
- Interest_rate_parity subject Category:Financial_terminology.
- Interest_rate_parity subject Category:Foreign_exchange_market.
- Interest_rate_parity subject Category:International_finance.
- Interest_rate_parity hypernym Condition.
- Interest_rate_parity type Article.
- Interest_rate_parity type Disease.
- Interest_rate_parity type Article.
- Interest_rate_parity type Field.
- Interest_rate_parity type Market.
- Interest_rate_parity comment "Interest rate parity is a no-arbitrage condition representing an equilibrium state under which investors will be indifferent to interest rates available on bank deposits in two countries. The fact that this condition does not always hold allows for potential opportunities to earn riskless profits from covered interest arbitrage. Two assumptions central to interest rate parity are capital mobility and perfect substitutability of domestic and foreign assets.".
- Interest_rate_parity label "Interest rate parity".
- Interest_rate_parity sameAs Zinsparitätentheorie.