Hello John,
Gone through all of your lectures and I'm not sure you mentioned anything such as the four way equivalence model..
I recently saw this in one of the past papers and I'm not sure what it means? Brief explanation will help.
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Four Way Equivalence
8y ago#1It is simply the idea that in theory interest rates and inflation rates are linked - the Fisher formula; the exchange rate changes due to inflation rates, and therefore - in theory - the exchange rate changes also with interest rates,
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