<?xml version="1.0" encoding="ISO-8859-1"?><article xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
<front>
<journal-meta>
<journal-id>1665-5346</journal-id>
<journal-title><![CDATA[Revista mexicana de economía y finanzas]]></journal-title>
<abbrev-journal-title><![CDATA[Rev. mex. econ. finanz]]></abbrev-journal-title>
<issn>1665-5346</issn>
<publisher>
<publisher-name><![CDATA[Instituto Mexicano de Ejecutivos de Finanzas A.C.]]></publisher-name>
</publisher>
</journal-meta>
<article-meta>
<article-id>S1665-53462020000200173</article-id>
<article-id pub-id-type="doi">10.21919/remef.v15i2.399</article-id>
<title-group>
<article-title xml:lang="en"><![CDATA[Uncovered interest parity and behavior of interest differentials]]></article-title>
<article-title xml:lang="es"><![CDATA[Paridad de tasas de interés y comportamiento de los diferenciales de tasas de interés]]></article-title>
</title-group>
<contrib-group>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Muñoz Mendoza]]></surname>
<given-names><![CDATA[Jorge A.]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Sepúlveda Yelpo]]></surname>
<given-names><![CDATA[Sandra M.]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Veloso Ramos]]></surname>
<given-names><![CDATA[Carmen L.]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Delgado Fuentealba]]></surname>
<given-names><![CDATA[Carlos L.]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
</contrib-group>
<aff id="Af1">
<institution><![CDATA[,Universidad de Concepción  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
<country>Chile</country>
</aff>
<aff id="Af2">
<institution><![CDATA[,Universidad de Concepción  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
<country>Chile</country>
</aff>
<pub-date pub-type="pub">
<day>00</day>
<month>06</month>
<year>2020</year>
</pub-date>
<pub-date pub-type="epub">
<day>00</day>
<month>06</month>
<year>2020</year>
</pub-date>
<volume>15</volume>
<numero>2</numero>
<fpage>173</fpage>
<lpage>183</lpage>
<copyright-statement/>
<copyright-year/>
<self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_arttext&amp;pid=S1665-53462020000200173&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_abstract&amp;pid=S1665-53462020000200173&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_pdf&amp;pid=S1665-53462020000200173&amp;lng=en&amp;nrm=iso"></self-uri><abstract abstract-type="short" xml:lang="en"><p><![CDATA[Abstract We analyze the relationship between exchange returns and interest rate differentials through Uncovered Interest Parity (UIP). We use a sample of 83 countries for 1980-2015 period, organizing the information into a panel data structure. The fixed-effects regressions show that the UIP is not fulfilled. However, we observe that the effect of interest rate differential on foreign exchange returns is non-linear. The non-linearity shape suggests that UIP have a lower bias in countries with high interest rate differentials, usually over 38 %. Even quartiles regressions show that the positive relationship between exchange rate returns and interest rate differentials would be observed when these variables experience high variations. These results are relevant for monetary and exchange policies design and for investment decisions on exchange markets.]]></p></abstract>
<abstract abstract-type="short" xml:lang="es"><p><![CDATA[Resumen En este artículo analizamos la relación entre los retornos cambiarios y diferenciales de tasas de interés a través de la Paridad Descubierta de Tasas de Interés (UIP). Usamos panel de datos para 83 países entre 1980 y 2015. Las regresiones por efectos fijos demuestran que la UIP no se cumple, pero el impacto del diferencial de tasas de interés sobre los retornos cambiarios es no lineal. La forma de la no linealidad sugiere que la UIP es menos sesgada en países con diferenciales de tasas de interés superiores al 38 %. Las regresiones por cuartiles demuestran que la relación positiva entre los retornos cambiarios y los diferenciales de tasas de interés se observaría cuando estas variables experimentan variaciones elevadas. Estos resultados son relevantes para el diseño de la política monetaria y cambiaria, y para decisiones de inversión en mercados cambiarios.]]></p></abstract>
<kwd-group>
<kwd lng="en"><![CDATA[F31]]></kwd>
<kwd lng="en"><![CDATA[F36]]></kwd>
<kwd lng="en"><![CDATA[G15]]></kwd>
<kwd lng="en"><![CDATA[exchange returns]]></kwd>
<kwd lng="en"><![CDATA[interest parity]]></kwd>
<kwd lng="en"><![CDATA[differentials]]></kwd>
<kwd lng="es"><![CDATA[F31]]></kwd>
<kwd lng="es"><![CDATA[F36]]></kwd>
<kwd lng="es"><![CDATA[G15]]></kwd>
<kwd lng="es"><![CDATA[retornos cambiarios]]></kwd>
<kwd lng="es"><![CDATA[paridad de tasas]]></kwd>
<kwd lng="es"><![CDATA[diferenciales]]></kwd>
</kwd-group>
</article-meta>
</front><back>
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