NBER WORKING PAPER SERIES COVERED INTEREST PARITY, UNCOVERED INTEREST PARITY, AND EXCHANGE RATE DYNAMICS Jonathan Eaton Stephen J. Turnovsky Working Paper No. 9814 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge MA 02138 September 1982 We wish to thank Gene M. Grossman for some helpful comments on this paper. The research reported here is part of the NBER's research program in International Studies. Any opinions expressed are those of the authors and not those of the National Bureau of Economic Research.