This case is aboutÂ FORECASTING
PUBLICATION DATE: September 03, 1996
Inflation, Exchange Rates, and Required ReturnsÂ Case Solution
This is a Darden case study. This note describes the links between inflation, exchange rates, and interest rates in a worldwide setting. Pupils are introduced to the basic ideas, which are exemplified with data from four countries.
The note highlights the managerial consequences of their relevance and these links to forecasting exchange rates. It is useful as part of prep for a lecture on the topic and as both background reading to supplement instances.