Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-1 Exhibit 5.1 The Determinants of Foreign Exchange Rates.

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Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-1 Exhibit 5.1 The Determinants of Foreign Exchange Rates

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-2 Exhibit 5.2 The Economies and Currencies of Asia, July–November 1997

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-3 Exhibit 5.3 Comparative Daily Exchange Rates: Relative to U.S. Dollar

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-4 Exhibit 5.4 Daily Exchange Rates: Russian Rubles per U.S. Dollar

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-5 Exhibit 5.5 Argentina’s Economic Performance, 1991–2000

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-6 Exhibit 5.6 Argentina’s Debt and Key Balances, 1991–2000

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-7 Exhibit 5.7 The Collapse of the Argentine Peso

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-8 Exhibit 5.8 A Timeline of Events in the Argentine Crisis

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-9 Exhibit 5.8 (continued)

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-10 Exhibit 5.9 Exchange Rate Forecasting in Practice

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-11 Exhibit 5.10 Differentiating Short- Term Noise from Long-Term Trends

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-12 Exhibit 5.11 Exchange Rate Dynamics: Overshooting

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-13 Exhibit 1 The Turkish Inflation Rate and Exchange Rate (quarterly)

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.5-14 Exhibit 2 The Fall of the Turkish Lira