Real interest rate parity: Decomposition of financial and comercial components in the case of Colombia

Authors

  • Sergio Clavijo Minister of Finance of Colombia

DOI:

https://doi.org/10.24201/ee.v11i1.259

Keywords:

interest rate, international parity

Abstract

The concept of interest rate parity is here revisited, emphasizing the different results that are obtained when the analysis is made either using a nominal interest rate difference, adjusted by the actual or expected rate of depreciation, or using a real interest rate difference. The results vary according to deviations from "purchasing power parity".

Metrics

Metrics Loading ...

Downloads

Published

1996-01-01

How to Cite

Clavijo, S. (1996). Real interest rate parity: Decomposition of financial and comercial components in the case of Colombia. Estudios Económicos De El Colegio De México, 11(1), 117–140. https://doi.org/10.24201/ee.v11i1.259