2026-04-17T13:15:29Zhttps://recercat.cat/oai/request

oai:recercat.cat:10230/446992025-12-18T01:49:13Zcom_2072_6col_2072_452953

00925njm 22002777a 4500 dc Galí, Jordi author 2024-11-14T10:09:38Z 2024-11-14T10:09:38Z 2017-05-02 2024-11-14T10:05:54Z Under uncovered interest parity (UIP), the size of the e¤ect on the real exchange rate of an anticipated change in real interest rate di¤erentials is invariant to the horizon at which the change is expected. Empirical evidence using US, euro area and UK data points to a substantial deviation from that invariance prediction: expectations of interest rate di¤erentials in the near (distant) future are shown to have much larger (smaller) e¤ects on the real exchange rate than is implied by UIP. Some possible explanations are discussed. forward guidance puzzle uncovered interest rate parity unconventional monetary policies open economy new keynesian model. Macroeconomics and International Economics Uncovered interest parity, forward guidance and the exchange rate