Explore BrainMass

Explore BrainMass

    International Fisher Effect (IFE)

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Assume U.S. interest rates are generally above foreign interest rates. What does this suggest about the future strength or weakness of the dollar based on the IFE? Should U.S. investors invest in foreign securities if they believe in the IFE? Should foreign investors invest in U.S. securities if they believe in the IFE?

    © BrainMass Inc. brainmass.com November 30, 2021, 2:18 am ad1c9bdddf

    Solution Preview

    The IFE would suggest that the U.S. dollar will depreciate over time if U.S. interest rates are ...

    Solution Summary

    This posting answers a question based on the International Fisher Effect (IFE).