A Note on Juglar, Bonnet and the Intuition of the Interest Parity Relation

Claude Diebolt and Antoine Parent

No 06-12, Working Papers from Association Française de Cliométrie (AFC)

Abstract: It is a commonly accepted view that the parity theory of forward exchange based on the law of one price was first formulated by Keynes (1923). In this article we assess the preliminary shapes of the Interest Parity (IP) relation. After reviewing the early beginnings of the IP relation we investigate two French economists of the mid 19th century who have hitherto received no adequate attention. We argue that Bonnet (1866) and Juglar (1866) ought to be considered as pioneers in the assessment of IP relation since Goschen’s contribution (1861) is related to the specificity of "long" exchange rates at bimetallic time.

Keywords: Interest parity; Forward Exchange Markets; Historical Economics; History of Economic Thought (search for similar items in EconPapers)
JEL-codes: B10 N20 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2006
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.cliometrie.org/images/wp/AFC_WP_12-2006.pdf (application/pdf)

Related works:
Journal Article: A note on Juglar, Bonnet and the intuition of the interest parity relation (2008)
Working Paper: A Note on Juglar, Bonnet and the Intuition of the Interest Parity Relation (2008)
Working Paper: A Note on Juglar, Bonnet and the Intuition of the Interest Parity Relation (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:afc:wpaper:06-12

Access Statistics for this paper

More papers in Working Papers from Association Française de Cliométrie (AFC) Contact information at EDIRC.
Bibliographic data for series maintained by ().