Suppose that Russia decided to increase interest rates by %2.  Considering the inflation and interest differential between the US and Germany, what is likely to happen to real exchange rate in Russia? Explain with this formula iRuble− idollar = π  − π *

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Chapter6: Managing In The Global Economy
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Suppose that Russia decided to increase interest rates by %2. 

Considering the inflation and interest differential between the US and Germany, what is likely to happen to real exchange rate in Russia?

Explain with this formula iRuble− idollar = π  − π *

 
 

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isim: Almanya

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