Tham khảo tài liệu 'bài luận tiếng anh 2', ngoại ngữ, kỹ năng viết tiếng anh phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | markets with that of Market C Benchmark Market where capital movements are known to be free from restrictions. By calculating a size of a band around the interest rate parity for each of the market for A B and C denoting each by TCa TCb and TCc respectively we could compare each with the other two. Such comparisons will allow us to answer the three questions in quantity terms and discuss related issues by identifying changes in capital control measures and other factors that may have influenced changes in transaction costs. III. Empirical Results 1 Deviations from Covered Interest Parity Condition A Comparison This section presents the empirical results of estimating transaction costs in three markets Market A B and C by making use of the left hand side of equation 2 in the previous section. The period for the empirical study is Q4 1999 through Q4 2004 which was dictated by the availability of data for Market A B and C. For each market sample data are based on daily observation of the relevant spot exchange rate the 3-month forward exchange rate the interest rate on 3-month local currency-denominated assets and the interest rate on 3-month foreign currency-denominated assets. 10 The results of deviation from the interest rate parity condition for each of the three markets are summarized in Figure 1 Comparison of Deviation from Interest Rate Parity Condition Q4 1999 - Q4 2004 . Several interesting points can be observed from this figure. First deviations from the interest rate parity condition involving the Hong Kong dollar and the . dollar in Market C Benchmark Market fluctuated narrowly around 10 See Appendix II for details on the definitions and sources of data. 11 zero throughout the sample period with an average quarterly rate of only percent see column 1 in Table1 .11 This estimate is substantially lower than the estimate percent made by Clinton 1988 for the five Euro currencies mentioned above and the estimate percent made by Frankel 1991 .
