Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
2Activity
0 of .
Results for:
No results containing your search query
P. 1
A Study of the Real Interest Rate Differential Mode and Nominal Inter-Bank Lending Rate Differential as a determinant of the Swiss-Euro exchange rate

A Study of the Real Interest Rate Differential Mode and Nominal Inter-Bank Lending Rate Differential as a determinant of the Swiss-Euro exchange rate

Ratings: (0)|Views: 19 |Likes:
An essay for the 2012 Undergraduate Awards Competition by Mike Meade. Originally submitted for Finance at University College Cork, with lecturer Ms Patricia Walsh in the category of Business & Economics
An essay for the 2012 Undergraduate Awards Competition by Mike Meade. Originally submitted for Finance at University College Cork, with lecturer Ms Patricia Walsh in the category of Business & Economics

More info:

Published by: Undergraduate Awards on Aug 31, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
See more
See less

02/14/2014

 
1
 A Study of the Real Interest Rate Differential  Mode and Nominal Inter-Bank Lending Rate Differential as a determinant of the Swiss-Euroexchange rate
 
 
2
TABLE OF CONTENTS
 
3
INTRODUCTION
The Swiss franc Euro exchange rate is currently an interesting exchange rate with headlines
such as “
Switzerland abandons floating exchange rate in dramatic
'currency war' twist”
1
. TheSwiss National Bank (SNB) operated a floating currency exchange policy until in September2011 it deem it appropriate to drop that policy in substitute for a fixed exchange rate so as theSwiss franc did not drop below 1.20 CHF/Euro.
THE REAL INTEREST RATE DIFFERENTIAL MODEL OF EXCHANGERATE DETERMINATION
With the movement of capital becoming ever more uncomplicated in recent decades due tothe development of technology and lifting of international barriers interest rate differentialshave become more important determinant of exchange rates. Well known models and studiesunderscore the role of interest rates in determining real exchange rates. These include the
1
   C   H   F   p   e   r   E   u   r   o
CHF/Euro

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->