Purchasing power parity theory

Definition of interest rate parity (IRP)

What is Interest Rate Parity (IRP)? Interest rate parity (IRP) is a theory that the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate. Key points to remember Interest rate parity is the fundamental equation that governs the …

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Food systems at the limit

The Covid-19 pandemic has ruthlessly exposed the deficiencies of the global food system, and a massive and growing food crisis is now looming. A quarter of humanity does not have secure access to food, with one in ten severely food insecure and up to 811 million hungry. Another quarter of …

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3 common ways to predict exchange rates

Using an exchange rate forecast can help brokers and businesses make informed decisions to minimize risk and maximize returns. There are many methods of forecasting exchange rates. Here, we’ll take a look at some of the more popular methods: purchasing power parity, relative economic strength, and econometric models. 3 ways …

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