| Term | Definition |
|---|---|
UIP (Uncovered Interest Parity) |  |
CIP (Covered Interest Parity) |  |
Risk Premium |  |
Forward Premium Puzzle |  |
Time-varying risk premium |  |
Real Exchange Rate |  |
Law of One Price (LOP)
|  |
Absolute PPP
|  |
Relative PPP
|  |
Fisher equation
|  |
Fisher effect
|  |
Money Market Equilibrium
|  |
Flexible prices
|  |
Full employment: ¯Y |  |