Explore the theory of uncovered interest rate parity (UIP), understand its formula, and discover how it links interest rates to currency exchange rate expectations.

After Japan’s bubble economy burst in the late 1980s and interest rates were subsequently slashed, carry trades and overseas investment boomed. As the Bank of Japan starts to raise Japan’s ...

Learn how floating exchange rates work, driven by forex market supply and demand, and compare with fixed rates to grasp their impact on global economies.

As the world economy faces unprecedented shifts, the dynamics of global trade, exchange rates and capital flows are evolving in ways that challenge established economic theory and policy frameworks.

The U.S. current account deficit has been growing for several years, as the country has been importing increasingly more than it has been exporting. In 1992, the current account deficit was 0.8% of ...

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation Growing remittance flows to emerging and developing economies may lead to real exchange rate appreciation and weaken their ...

The exchange rate has been an important topic during the administration of President Rodrigo Chaves. The strong appreciation of the Costa Rican currency has brought a lot of uncertainty for different ...