International fisher relation: Countries with high interest rates should have currency values that fall over time.
But in the real world, if central bank raise interest rate, the local currency will appreciate.
International fisher relation: Countries with high interest rates should have currency values that fall over time.
But in the real world, if central bank raise interest rate, the local currency will appreciate.
restrictive monetary policy.
Thanks!
Can we say international fisher relation is looking at long run and monetary policy is focusing on short term?