Four way equivalence theoryForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Four way equivalence theoryThis topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts June 11, 2021 at 10:38 am #624644 ilham9089ParticipantTopics: 286Replies: 183☆☆☆Hi sir, can you please explain this? June 11, 2021 at 3:11 pm #624694 John MoffatKeymasterTopics: 56Replies: 53878☆☆☆☆☆The Fisher formula shows how, in theory, interest rates and inflation rates move up and down together.Purchasing power parity explains how, in theory, future spot exchange rates are determined by the relative inflation rates.Interest rate parity explains how futures prices are determined by the relative interest rates.In theory therefore the future spot rate should equal the forward rate.I do explain each of these in my lectures.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In