CHAPTER 8 : RELATIONSHIPS AMONG INFLATION , INTEREST RATE AND EXCHANGE PRATE

①
'
IRP co 7
hay bro
'

②
'

CIA co Khoi Thi

hay Ko ? Nui eo the ND-Tna-othu.co their ra-tssl.la baonhieee

③ Mieiotoieaek three ma-ND-tthu.ihi.in CIA d-eithulo.inhuo.in ?

④ taedong G-A birthing ?

po =p IRPF Ko Kunio drank CIA

Gdi : Bta po ≠ p IRP

#

F¥ Tomi tat St
'

{ dÑg
① po
ngoa.it?vi-gain'rs1la-ngoa.if&
= -1 -

. = CAD =
€016489 CAD =

Fn = CAD =
€
0,6256 Euro = WI te?

poc^→ =

0%5%-1 = - 0
,
036 =-3 , 6%

Cpo do twig no bien

'

dm-jngo.ae te:)
in = i€ = 0,15%

Ig = Icap =
01390
pom
p = in -

if = 0,15%-0,38
€ CAD
→ po =
p ◦
-

0,15%
-

IRP -7
po <
p
CEAE NAT ncngoai
po ≠ p :

②
'

po vi. the Kerik drank

<
p

C- vet Canada NAT Canada otaiitrincphap

#Ñ
CIA
g. = ( t ( 4 +
p◦€ ) -
1

snort:o) ↓
Notting ni
'

Canada ctaii tri qua P posp CEA C-

ig ri
quantum if Sana
→
 ?
adieu otoi do pÉ = poem
=
( l + 0,15% ) ( t 3,6 %) -1 = 0,037554

B¥ :

'
Tom tat St = USD = JPY 97,63 in = 0,290 ✗
?z = 0,05 %

Fn = USD = JPY 98,56 iz = 015% ✗

13-2 = 0,12590
98-156 l 0 0095
po = -
=
,

97,63

D= 0105%-0,1253 = -0,075%
'

* RP * vi. the twill daub C- vet

'
po ≠ p ME po >
p trong ne
Japan
KIA = ( l +
iz ≥ ltpo) -
1

= (1+0,12590) (11-0,0095) -
l = 0 0107
,

caii * → Paso ( Ask tang)

Nʰa?t
→
mua

Quy tinto d-aiitii

thy Cig
{
:
, USD → ?
'
g-py ban JYP

'
ban
Ky ban USD
-

① Mma USD
→
cantus D ↑ → Pus% →
giaban USD tang
'
ban Jpy
'
② ban ky-ha.no USD →
cung
USD
tang P

Jpy
£ ↳ '
KH USDA
gia mua

" '

③ NAT Nihat → ottu

My i voir to
my
'
→
insist

→ i spy P

PPP ↑
It Purchasing Power
Parity ( PPP ) tri LOP =
law
of one
price
SUÉ mua :
la-hi.org hañghoanwa ate is 1dm: tieiité chotrc
thang hod
gioiignhaee cuñgmucgié
→ lhhi
guy

Sui
'
1mF to
veidoiigtieii chung
muatrmgnc :

> [ internal ]
¥

I gujmuanengoagf-ho.it?i
purchasing power

→ ?
hgoa.it?i=-ngoa.ite?--Stnoite:-1dnig-m?Ieco'1/s+ngoa.ite:
St
>

[
pz →

Ps
=

¥%
'suÉ SUÉ '
SUE and
Ngong gia mua : mua
trong ne = me
ngoai
__Pp÷
""
1-
÷ =

Pa ✗ s+
£ TGHD gina doting tieri
?⃝
 '
LOP: tiner teiighanghoa '

honing hoa ≠
' "
Absolute horn of PPP : NGSM tuy.it dirt : do = 1 Ro
PPP divided into
Relative Form
of ppp

* Sf =
PI
Ps
f
Sten ?

Ban d-aii : PPP z : pen = 8+9%3

saw Phil + In ) =
51-+1 ✗
Pg (1 +
Ig)
Ih =Phᵗ
"
% St Pz C1 1- I a) 8++1 Ps 11 1-
Ig)
r-
. = ✗

8++1
/ g+
=

%¥÷g { ez =P

ez ≠ p
:

:
PPP F

ppp *
↑
DERIV AMON OF PPP N
'
sic tubing diving
gang gia
: mica

ˢᵗs¥
[
t
% =

11,1+1%-3
-

Aieii keep Iquondgia

Sᵗg÷
Ih PPD
- t =
ez = -
t ≈ -

Ig xaef ra

Ih Ia
P = -

① If In > Ig , eg > 0:
position that
currency will
appreciate when the home country 's inflation exceed the foreign
's inflation
ngoa.it?tainggualquoigianaoco'lar.nphatcaohon , doing tiaiiggcto bi mat"!
'
countries → Stare > St →
.

"

⑧ If Ih <
If ,
eg
20 :
negative
4
depreciates were
foreign a bond
→ star a St

Cos Chi
'
Kain dwi.hn hic '

Mua cppp)
gang géa
*

Moon:*: tango
:

[ % =
£¥ -
t = -1
, Meh
>
Ig ez so → St + , > St
:{ noite: guanigia
'

Ih Ig µ qua
p
↳ Ia
-

{ Ngoa.it?egiaingia
Stu
tanggia
'
St
[ Nai
Nai ez =p Moi to
Ig
→
3- ppp <
pppy <
ego
→ -

, . .

'
*
ez f- p :
ppp

ez < psuimuahhoaaeanuocngoae.ae'a aidan

A ( Nk A)
* Aoi the: PPP : tong nuloi
81-+1 p ≈ In -

Ig ( %)
{ ez =-3 %
< St
=p)
a
PPD ( ez
ngo.aite.tn
P = + 370
In >
Ig
herea' tnngnd >
hkÉF

3%
0
i ☐ =
eg
=

s+s -1

g. , g, , , g,
,

µ µ µ,
,mgn,
geg.gg
, ,,
.

. . , ,
,

P = Ih -
Ia = -28 → In < Ig

hhoaimgné < hhoa' mioingoai → bat! toy

 eg suÉ '
hoa
>
p
: mua
twang NN

)
ciea
ng-da-ntmrgnc.tl ✗ KP

*
Dry batty gia giao tung tiong lai
' '

ngay .

F- [ Star] = St Lt t ez )

8++1
( !+¥÷) [ It Is 9
= St • ≈ St ✗ Ia -

I / INTE NAROWAL FISHER EFFECTS

1- Fiske effect chein.hlie.hlaisuatdanhnghuageiiiacaiqgiapha.no

: ahh chink t.ch
tingea.m phat ky-w.mg
↳ sñ
dung laisuatd-ege.ae?thidrta.isaotygiahoiidoaithaydvF
↳ thoigian
theo

bu-d-oipban-gphaisbuhsdn-hsuaithi.ec
hieñquantoippp rico moi
!
quan
he: lain phat .
Matmat .
→

hphdtky-n.mg y
+ I →
harp phat fain giant Suk Mua • took : 50k =
- Live sriimua :

↓
( Soho) [
why 10%
↓
1
55

Gia thief A.
*
TThio-ngttie.ie quoi 55k 2 ve
'

N-DTTky-vo.mg
=
Ilok :

→
lñnluinhaw 1

'
,
Sukma =

p÷tIg
ND-TyaieaeinhunhawhsuatdanhnghioiLphatntujnng
.ae
→
Lsuoit thief

≈ hesuoit thu.it
' / •
Utility Phai Choi
: 1- naim
a

T⑨ toi-hoanhuiidl.org
-

hsu-atdanhnglu.ci B ≈ Laisuiit thee? + Lphat Bkujrong

-
as
I
→

giata-nggiimuakhirl%fF.sk t⇐.mg
A- hsdn ≈ 0 I →

! choi twain Cneatth ?

C

* Giathiéé 2: The:
tng-torita.ingang giasiiémna
Adn = 0 + A
Lamptratwoivg
%
IEF
ppp
F PPP :
TGHD-bieiidm.iq
bien
'
Lsuat!
dnghiñ =
ez =

ˢ¥ˢ -1
≈
doing

↳ Kinh doanlvchen-lrbei.to k° phoñgngua

'
séw TSSL bents quoin being us Is wait tnngni
 Cooing three otieei chink
gia hoidoai)
'
*
three syi ( thee
'
TSSL d-a-
try
'
TSSL.co heifer he
:c i r =
(I + ig ) ( l + ez )
-

tuidaiitetnng neioc tuner

'

hive hgituidaii
' '
Theo
ly thuyét IEF ,
TSSL TB Set baiig TSSL co trend ngoai
'
tie ki i r = in

It + Ig ) It
Sg +
④ l in
-

= =

Tia > is ess.o.ngoa.it: taiiggié

es =

Y¥ g - i ≈ ia -

iz
\
Kraig eg <o :
ngoa.it?bf++ayS+:egso:ngoa.ite:Ptanggia
/
-

* Uncovered CIA ( UIA) : A&t eg =

£-¥ -1

↳t
mgoa.it?tgiaingialUIAqg=AgY-llti-s ¥
⑨ : :

) ✗ £+1
)s¥ˢ Aw
-1 = ( it is -1

"' "
Cdtig ) ( da ez ) 1
9g
-
=

"£A
* IEF
y Sg = in
11
tip it teg) -1 = in

'
* Kit beam :

'
'

nghiaea-dnigugoa.it:
'
khi in lshilaisuat nd goat thap hot tar
+ > ig thi
ez >0 si
tang gia n

!
heat tmgni
+ Kai in <
if Thi
ez 40
nghiala-d-oiigugoa.ite.si again gia Kai
dat
'
neat uingoa-icaohorolai.suÉt
'

tang ne

'
doarln
eg Lp
* At the
: vi. the Kinh UIA C- voi NAT ndngoai -

p≈ in -

is
A
ngoa.itie.ge?omIFE
µ
2%
of 20
drioig Phair Giao
{ noi.ie tang
→
eg=- ( ez =p) UIAF trees

P-a.iq iz Tho
,

. = +

in >
ig

ñN*"¥É
→

→ c-

o es
=

ˢᵗ¥ -1

"
% es >◦ now:*:* "

µ
→
,
I
in don-gron-gcka.gr néngoai
-6g in is s % → < is →

p
-
- =
=

-38
- -

kldoaih UIA
lg >
p &gYᵗA > in
: '

vi. tail C-
Vet Notting ne
SO SANH IRP , PPP , IFE

Irp PPP IFE

pha-n-bu-lehiqtikhaiiky-h.am) Phair train

thay.dk?tmgty'gia'Phaiitraonthayotoitmg try
'
'
Bien si

drink Po =

1T¥ - 1 Vs
f- in is
-

giaonagay
(
ez ) giaigicongay ( ez )

iiakiisaai
es=§÷-1=¥¥÷g -1
g. =
"¥ -1=1,4%-1
p= in
In is
↳
p Ig
= -

vs -

,
lasmphant
itmgIE-fla-lsuats.ae
'
king bury
'
I PPP / a-
:
tmg :

'
ʰʰ◦£nᵈⁿPÑ '

TEA F haye ?
[ mua Suta co F haye ?
'

zaia ncngoai .

Dang vi. the 'EvEai ?

2am plead
biisuat

p = in -

ig ^
P=④h ④g -

np=①a -

if

ppp
{
^
Ditty Irpcpo =p ) Steal st-sagte.to /yap
)
'

{
Po <
p vi. the kdoanh CIA < IFE

nuiocngoae gpozodida-e tuni. o?'

÷÷÷:④
C- vé NAT
a

"④¥es=ˢ÷i
↓
yep
" snimn%hhÉniÉÉ
"
Evinañduiitu
ieiauidantmgnit
tnuioingoai
* ¥:-. I
'

>

to Po >
°
eg=ˢ+-¥ -1
{
- - - -

{
>0
A
Peo C
ez '
-
- -

§
-

ligoqiti Pgia
>
Pho ↑
* po p

YesPLO
>0 $41 > St

{
G- +1 > St ngoÉt&
'

kdoanh
"
vi. the CIA Eve →

otaeitu
' in < ig
tongue tanggia
-
NAT →
↓
ra
ningoai
If
.

Ih <
doñgvoiichayra
ndngoaii
hhtmgnc < hhngoai
sienna
*
eg > p
ez >
p
hhniioingoai ↓
aiaeudain '

vi. the kinhdoanh

tmgmioil UIAE vé NAT
( ✗ KP) tmg
néoancngoai
eg"ᵗA > in
-­
 Bai VÉIEF
*
tap
-

I F-
Fy eg =
5%1--1 =p =
ᵈ- -1
It is

→ Stil =
St .
d-II = 146,66×(1+10)
I if +
= 145 , 2590
(1+490)

idanhnghéa = Laisnair the:c + LP

✓ interact
= 2% + dob = in = solo
du

↳ tank = 290 +290 = if =

4%
du