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welcome to the next installment of my video lecture series for International Economics and in this particular video lecture were going to be comparing dollar rates of return on dollar and euro deposits that is what you need to look at if youre considering making investments in financial instruments that are denominated at dollars versus euros so what were going to do is were going to take a look at this table were going to have columns that are going to be for the dollar interest rate the Euro interest rate were also going to take into consideration the expected rate of dollar depreciation against the euro and with those three pieces of information we should be able to calculate a rate of return difference between the dollar and euro deposits so make sure you understand this in particular the importance of the expected exchange rate in determining whether or not you should buy financial instruments denominated in different currencies that its very important that you know that yo
