There is a great deal of academic theory لنا الفوركس around currencies. While often not applicable directly to day-to-day trading, it is helpful to understand the overarching ideas behind the academic research. The main economic theories found in the foreign exchange deal with parity conditions.
The basis of this theory is the law of one price, where the cost of an identical good should be the same around the world. 2’represent the rates of inflation for country 1 and country 2, respectively. 2′ represents the interest rate in country 2. BRA represents the reserves account balance. Asset Market Model The Asset Market Model looks at the inflow of money into a country by foreign investors for the purpose of purchasing assets such as stocks, bonds and other financial instruments.