01667cas a2200241 a 4500 AALejournalIMF008491 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451847017 1018-5941 BD-DhAAL BD-DhAAL Isard, Peter. Uncovered Interest Parity / Peter Isard. Washington, D.C. : International Monetary Fund, 1991. 1 online resource (12 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This note provides an overview of the uncovered interest parity assumption. It traces the history of the interest parity concept, summarizes evidence on the empirical validity of uncovered interest parity, and discusses the implications for macroeconomic analysis. The uncovered interest parity assumption has been an important building block in multiperiod and continuous time models of open economies, and although its validity is strongly challenged by the empirical evidence, its retention in macroeconomic models is supported on pragmatic grounds, at least for the time being, by the lack of much empirical support for existing models of the exchange risk premium. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1991/051 Full text available on IMF http://elibrary.imf.org/view/journals/001/1991/051/001.1991.issue-051-en.xml IMF e-Library