pythonq3.py

Created on February 19, 2025

448 Bytes

UNCOVERED INTEREST PARITY
1) Two strategies 
Return for converting to EUR, 
receiving EUR interest and 
re-buying GBP after 1 year
(Ee/E)*(1+ i)-1 = i*
Ideal spot rate 
(0.90/E)*(1+2%) - 1 = 3%

2) Tableau 
(E/Ee)*(1+i*) = 1+i 
La banque centrale abandonne et 
la monnaie se dévaluer. 
La crise est résolue par une dévaluation

REAL EXCHANGE RATE (Quantity of F for D)
Q = E*Pd/Pf
E = 1D = xF
Si Q=1,PPP absolute

PPP
Q = E*Pd/Pf

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