Deviations from Covered Interest Rate Parity
We find that deviations from the covered interest rate parity (CIP) condition imply large, persistent, and systematic arbitrage opportunities in one of the largest asset markets in the world. Contrary to the common view, these deviations for major currencies are not explained away by credit risk or...
| Main Authors: | , , |
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| Other Authors: | , |
| Format: | Article |
| Language: | English |
| Published: |
Wiley,
2020-11-13T22:01:51Z.
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| Subjects: | |
| Online Access: | Get fulltext |