I remember that exchange rate risk the inflation risk, but why? What is the difference between exhange rate risk and real exchage rate risk? How to measure and manage those exchange rate risks? FCRP is systematic and can’t be diversified away?
I remember that exchange rate risk the inflation risk, but why? What is the difference between exhange rate risk and real exchage rate risk? How to measure and manage those exchange rate risks? FCRP is systematic and can’t be diversified away?