| HBS Case Collection
(Revised November 1994)
Note on Fundamental Parity Conditions
Provides a simple framework for analyzing expected exchange rate movements. Basic parity and equilibrium conditions are presented including purchasing power parity, forward parity, interest rate parity, the domestic Fisher effect, and the international Fisher effect (Fisher open). Empirical evidence about these conditions are discussed. References are provided.
Keywords: Currency Exchange Rate;
Situation or Environment;