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    International Financial Management
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    Exam 9: Forecasting Exchange Rates
  5. Question
    Using the Inflation Differential Between Two Countries to Forecast Their
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Using the Inflation Differential Between Two Countries to Forecast Their

Question 48

Question 48

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Using the inflation differential between two countries to forecast their exchange rates is not always accurate because of such factors as the uncertain timing of the impact of inflation and barriers to trade.

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