Jump to ContentJump to Main Navigation
International FinanceA Survey$
Users without a subscription are not able to see the full content.

H. Kent Baker and Leigh A. Riddick

Print publication date: 2012

Print ISBN-13: 9780199754656

Published to Oxford Scholarship Online: May 2013

DOI: 10.1093/acprof:oso/9780199754656.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in OSO for personal use (for details see www.oxfordscholarship.com/page/privacy-policy).date: 10 December 2018

Markets and International Interest Rate Parity

Markets and International Interest Rate Parity

Chapter:
(p.37) 3 Markets and International Interest Rate Parity
Source:
International Finance
Author(s):

SUK HUN LEE

A. G. MALLIARIS

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199754656.003.0003

This chapter provides a general overview of the international markets for foreign exchange (FX) and FX derivatives as well as the theoretical relationships that tie these markets together with interest rates and central bank policies. The chapter begins by summarizing the FX markets and discussing their current size and uses. It then details and distinguishes the various markets and FX products. The chapter also examines the FX derivative markets and presents the Garman and Kohlhagen pricing model. The theoretical relationships among returns, exchange rates, and interest rates are discussed, specifically examining equilibrium conditions and the Taylor rule. The chapter concludes by reviewing several recent developments in the global currency markets.

Keywords:   foreign exchange markets, currency forward market, currency futures, foreign currency options, interest rate parity, federal policies and currency markets, Taylor rule

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .