The Covered-Arbitrage Schedule

May 1970
Journal of Money, Credit & Banking (Ohio State University Press);May70, Vol. 2 Issue 2, p247
Academic Journal
The article discusses recent developments in the covered arbitrage schedule, with an emphasis on examining why capital placements do not enjoy perfect international mobility. For purposes of their discussion the authors view the arbitrage schedule as consisting of the relationship between short-term capital placements and covered interest differential. The views of various writers on particular aspects of the issue are noted and commented upon. Several reasons are given for why foreign assets do not perfectly substitute for domestic ones.


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