The Eurodollar Market, Speculation, and Forward Exchange.

The author discusses the article "A Theoretical and Empirical Analysis of the Eurodollar Market," by Georg Rich. The author's comments are directed primarily to some issues raised in Rich's theoretical and empirical analysis of the Eurodollar market. The author found that the most interesting portion of Rich's paper are his empirical results. The author asserts that the Rich's data should not have a logical contradiction between approximate interest parity and a relative low elasticity of the covered arbitrage schedule, also known as relatively low capital mobility.