Purchasing Power Parity Theory

This is a discussion on Purchasing Power Parity Theory within the Economic & Fundamental Analysis forums, part of the Trading Methods category; Hi I am brand new to fundametal currency theories. Could anyone explain if purchasing power parity theory holds? Is it ...

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Old Feb 15, 2009, 6:49am   #1
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Default Purchasing Power Parity Theory

Hi
I am brand new to fundametal currency theories.
Could anyone explain if purchasing power parity theory holds?
Is it a useful tool for covered interest arbitrage, currency speculation, hedging?
How about international fisher effect?
Are these assumptions work in practice?

I will appreciate some experience
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