In the early 1990s, France and Germany had similar current and forecasted inflation rates. However, political/economic uncertainties were higher in France, where several political changes in the 1980s had led to several devaluations of the French franc. Do you expect to observe equal interest rates in the two countries? Why or why not?

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The Answer of In the early 1990s, France and Germany had similar current and forecasted inflation rates. However, political/economic uncertainties were higher in France, where several political changes in the 1980s had led to several devaluations of the French franc. Do you expect to observe equal interest rates in the two countries? Why or why not?

In the Early 1990s, France and Germany Had Similar Current