Interest rate parity
id:
interest-rate-parity-180-6516371
title:
Interest rate parity
text:
Interest rate parity is a no-arbitrage condition representing an equilibrium state under which investors compare interest rates available on bank deposits in two countries. The fact that this condition does not always hold allows for potential opportunities to earn riskless profits from covered interest arbitrage. Two assumptions central to interest rate parity are capital mobility and perfect substitutability of domestic and foreign assets. Given foreign exchange market equilibrium, the interes
brand slug:
wiki
category slug:
encyclopedia
description:
No-arbitrage equilibrium state
original url:
https://en.wikipedia.org/wiki/Interest_rate_parity
date created:
2005-08-08T15:04:13Z
date modified:
2024-09-05T09:09:34Z
main entity:
{"identifier":"Q205231","url":"https://www.wikidata.org/entity/Q205231"}
image:
fields total:
13
integrity:
15