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Search by topic:   07168. THE INFLUENCE OF INTEREST RATES ON FOREIGN EXCHANGE RATES. Overview of the evidence that spot and forward foreign exchange rates are determined by difference in interest rates between countries, so that real rates of return are equal between nations. Includes details of a typical interest arbitrage transaction on the foreign exchange markets, limits of FE markets as vehicles for highest return on funds, inflation rates and political considerations, role of actual transaction costs, and 1981-82 movements of dollar, D-mark, yen, and the interest rates in the three countries. 14 pages, 22 footnotes, 6 bibliographic sources.   $98 Copyright 2002 Academic Research Papers Associate Term Paper Sites: Academic Research Papers Academic-Research-Papers Research Central Term Paper Assistance