Interest rate parity is more likely to hold in the short run than purchasing power parity.

Name: Interest rate parity is more likely to hold in the short run than purchasing power parity.
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Financial asset prices typically adjust to new information more quickly than goods prices. Since interest rates are the return to holding interest-bearing financial assets, we might expect interest rates to adjust quickly to new information just like exchange rates.

Interest Rate Parity Is More Likely to Hold in the Short