covered interest parity

C. Emre Alper and Oya Ardic

from Palgrave Macmillan

Abstract: Covered Interest Parity describes an idealised situation in foreign exchange markets in which the interest rates on assets differing only in the currency of denomination will be equal. This article describes the theoretical assumptions under which CIP holds and the evidence for CIP in practice.

Keywords: CIP; counterparty risk; emerging markets; foreign exchange (search for similar items in EconPapers)
JEL-codes: F31 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (7)

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