HistoPol , 5 days ago @GhostOnTheHalfShell @economics-that-works #Economics #PublicFinances #US #EU #ConvergenceCriteria (6/n) ...hypothesis in international finance that suggests differences in nominal interest rates reflect expected changes in the spot exchange rate between countries.")* https://en.m.wikipedia.org/wiki/International_Fisher_effect Now, if you are the #ReserveCurrency of the #InternationalFinanceSystem, you can evade raising interest rates proportionally for quite some time. This is why #China has been working for...
@GhostOnTheHalfShell @economics-that-works
#Economics #PublicFinances #US #EU #ConvergenceCriteria
(6/n)
...hypothesis in international finance that suggests differences in nominal interest rates reflect expected changes in the spot exchange rate between countries.")*
https://en.m.wikipedia.org/wiki/International_Fisher_effect
Now, if you are the #ReserveCurrency of the #InternationalFinanceSystem, you can evade raising interest rates proportionally for quite some time. This is why #China has been working for...