Expected inflation rate-current nominal interest rate gaps

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Reference no: EM131847791

Suppose that expected inflation in the U.S. is 1.9% and the expected inflation rate in China is 1.8%. Provide an argument or several arguments to tie this differential to as many of the following as possible.

Current Nominal Interest Rate Gaps

Current Real Interest Rate Gaps

Current Spot Exchange Rates

Current Forward Exchange Rates

Expected Future Nominal Interest Rate Gaps

Expected Future Real Interest Rate Gaps

Expected Future Spot Exchange Rates

Expected Future Forward Exchange Rates

Reference no: EM131847791

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