Interest Rate Parity

A discussion of interest rate parity with a numerical example and the derivation of the interest rate parity formula.

[magnuslp]

What I just don't understand is when the interest rate is lower in Canada than US, why would the USD not appreciate since everyone would want to invest in their country.

[ntcuongct]

Dear Friends, I have a question: in IRP (Interest Rate Parity), the base rate of the two currencies is the nominal interest rate or the real interest rate announced by the central banks of the two countries?.