Study Guide Week Twelve (

Slides:

Advertisements

Similar presentations

Price Levels and the Exchange Rate in the Long Run

Advertisements

Interest Rates in the Classical Model Nominal vs.. Real Interest Rates Real interest rate =Nominal rate - Inflation rate  = r- 

First edition Global Economic Issues and Policies PowerPoint Presentation by Charlie Cook Copyright © 2004 South-Western/Thomson Learning. All rights reserved.

First edition Global Economic Issues and Policies PowerPoint Presentation by Charlie Cook Copyright © 2004 South-Western/Thomson Learning. All rights reserved.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 International Trade, Exchange Rates, and Macroeconomic Policy.

Purchasing Power Parity (PPP) The PPP Hypothesis states that the exchange rate between two countries’ currencies equals the ratio of the currencies’ purchasing.

1 Welcome to EC 209: Managerial Economics- Group A By: Dr. Jacqueline Khorassani Study Guide Week Two (Note: You must go over these slides and complete.

The monetary approach to BOP and exchange rate determination Concept and exemplification.

Chapter 14 Prices and Exchange Rates: Purchasing Power Parity.

1 Welcome to EC 382: International Economics By: Dr. Jacqueline Khorassani Week Eleven.

1 Welcome to EC 382: International Economics By: Dr. Jacqueline Khorassani Week Twelve.

The Role of Exchange Rate Chapter  Currencies are traded in the foreign exchange market.  The prices at which currencies trade are known as exchange.

International Economics

1 Welcome to EC 209: Managerial Economics- Group A By: Dr. Jacqueline Khorassani Study Guide Week Six (Note: You must go over these slides and complete.

Introduction Land area and population Income Income per capita International trade The balance of payments Dynamics and globalization Trade connections.

USA D GB Turkey China India Poland. GDP per capita in national currencies USA D GB Turkey China India Poland.

Topic 3: Exchange Rates Rogoff, K. (1996) “The Purchasing Power Parity Puzzle” Journal of Economic Literature, Vol. 34, No.2 Rogoff, K. (1996) “The Purchasing.

1 Welcome to EC 382: International Economics By: Dr. Jacqueline Khorassani Study Guide Week Ten (Sorry this week I am late.) (

1 Welcome to EC 209: Managerial Economics- Group A By: Dr. Jacqueline Khorassani Study Guide Week Three (Note: You must go over these slides and complete.

1 Welcome to EC 209: Managerial Economics- Group A By: Dr. Jacqueline Khorassani Study Guide Week Nine (Note: You must go over these slides and complete.

Parity Conditions in International Finance International Finance (MB 74)

Welcome to EC 382: International Economics By: Dr. Jacqueline Khorassani Study Guide Week One (Note: You must go over these slides and complete every.

1 Welcome to EC 382: International Economics By: Dr. Jacqueline Khorassani Study Guide Week Four ( Note: You must go over these slides and complete every.

© 2007 Pearson Addison-Wesley. All rights reserved Chapter 19 The Money Supply, the Price Level, and the Balance of Payments.

1 Welcome to EC 382: International Economics By: Dr. Jacqueline Khorassani Study Guide Week Two (Note: You must go over these slides and complete every.

1 Welcome to EC 209: Managerial Economics- Group A By: Dr. Jacqueline Khorassani Study Guide Week Eleven Study the following topics before Thursday, November.

Determinants of Exchange Rates. Why Study Exchange Rates? To understand the economic environment –Forecasting for planning purposes To understand exposure.

Price Levels and the Exchange Rate in the Long Run Chapter 16 International Economics Udayan Roy.

1 Exchange Rate Determination(3) Monetary Approach Dr. J. D. Han King’s College U.W. O.

Credit Helen Meisler for this chart showing vix put/call and S&P 500.

1 Welcome to EC 382: International Economics By: Dr. Jacqueline Khorassani Week Two.

Welcome to EC 209: Managerial Economics- Group A By: Dr. Jacqueline Khorassani Study Guide Week One (Note: You must go over these slides and complete.

Quick Review: A Simple Model of Long Run Exchange Rates Roberto Chang February 2013.

Purchasing Power Parity. Other than GDP, PPP can give economists a look into how a nation is doing economically PPP measures a countries living standard.

Exchange Rate Determination

1 Welcome to EC 209: Managerial Economics- Group A By: Dr. Jacqueline Khorassani Study Guide Week Ten (Sorry this week I am a little late.)

Prices and Exchange Rates: Purchasing Power Parity

Prices and Exchange Rates: Purchasing Power Parity

Exchange Rate Determination(2) Trade Approach

Update of some of the charts from EOI 2007 in March 2008

Measuring Exposure to Exchange Rate Fluctuations

An Introduction to International Economics

Purchasing Power Parity

Unit 3: Monetary Policy Foreign Exchange 4/12/2011.

Analysis of Economic Situation

19 International Finance CHAPTER CHECKLIST When you have completed your study of this chapter, you will be able to 1 Define exchange rates and demonstrate.

CHAPTER 6. Fixed Prices: The Mundell – Fleming Model

Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

Purchasing Power Parity

PURCHASING POWER PARITY

Exchange Rates in the Long Run

International Financial Management

Welcome to EC 209: Managerial Economics- Group A By: Dr

Starter: Recap… Macro effects of a currency depreciation

System General Principles? What is it good at?

Foreign Exchange Markets,

Exchange Rate Determination(3) Monetary Approach

Price Levels and the Exchange Rate in the Long Run

Turkey : A Case Study of the Purchasing Power Parity

Chapter 2. Exchange Rate Determination

Welcome to EC 209: Managerial Economics- Group A By: Dr

Market Determinants of Exchange Rates

Economics of International Finance Econ. 315

International Economics

INCIDENCE OF POVERTY IN MALAYSIA (1999, 2007)

INCIDENCE OF POVERTY IN MALAYSIA (1999, 2007)

Foreign Exchange Markets,

Balance of Payments & Exchange Rates

Preview Law of one price Purchasing power parity

Study Guide Week Twelve

Presentation transcript:

Study Guide Week Twelve ( Welcome to EC 382: International Economics By: Dr. Jacqueline Khorassani Study Guide Week Twelve (

General Questions on Chapter 15 What are the determinants of the exchange rate over long periods of time? What effect does monetary policy have on the country’s price level and therefore its exchange rate? What type of benchmark exchange rate should be used to compare the current exchange rate against?

Specific Questions on Chapter 15 What is the Purchasing Power Parity? What is the Absolute Purchasing Power Parity? What is the Relative Purchasing Power Parity? Why PPP fails many empirical tests? Nominal/real exchange rates How are they different? Nominal/real interest rates What is real interest parity?