Economists have put two basic theories of exchange rate equilibrium to the test
This column tests two theories – purchasing power parity and uncovered interest rate parity – using the case of the advanced, small open economy of Israel and the US.
Nathan Sussman is the Director of research and a member of the monetary policy committee at the Bank of Israel and a professor of economics at the Hebrew University in Jerusalem.
This column tests two theories – purchasing power parity and uncovered interest rate parity – using the case of the advanced, small open economy of Israel and the US.