Beth Miller does not believe that the international fisher effect (IFE) holds. Current one year interest rate in Europe are 5%; while one year interest rates in the US are 3%. Beth converts $ 1,00,000 to euros and invests them in Germany, One year later, she converts the euros back to dollars. The current spot rate of the euro is 1.10.

Beth Miller does not believe that the international fisher effect (IFE) holds. Current one year interest rate in Europe are 5%; while one year interes
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Beth Miller does not believe that the international fisher effect (IFE) holds. Current one year interest rate in Europe are 5%; while one year interest rates in the US are 3%. Beth converts $ 1,00,000 to euros and invests them in Germany, One year later, she converts the euros back to dollars. The current spot rate of the euro is 1.10.

Beth Miller does not believe that the international fisher effect (IFE) holds. Current one year interest rate in Europe are 5%; while one year interest rates in the US are 3%. Beth converts $ 1,00,000 to euros and invests them in Germany, One year later, she converts the euros back to dollars. The current spot rate of the euro is 1.10.

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