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Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation We study the behavior of Covered Interest Parity (CIP) deviations – aka ... s lies in measuring local currency interest ...

Hitting parity is psychologically significant for ... They do take exchange rate movements into account when they set interest rates, but direct intervention to support the euro is extremely ...

Uncovered interest parity (UIP) has been almost universally rejected in studies of exchange rate movements. In contrast to previous studies, which have used shorthorizon data, we test UIP using ...