'Purchasing power parity theory' presentation slideshows

Lecture 2

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Relationships among Inflation, Interest Rates and Exchange Rates

8. Relationships among Inflation, Interest Rates and Exchange Rates. Chapter Objectives. Explain the purchasing power parity (PPP) theory and its implications for exchange rate changes Explain the International Fisher effect (IFE) theory and its implications for exchange rate changes

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Real Exchange Rates

Real Exchange Rates. As a result, U.S. exports rise, and U.S. imports fall, and both of these changes raise U.S. net exports. Conversely, an appreciation in the U.S. real exchange rate means that U.S. goods have become more expensive compared to foreign goods, so U.S. net exports fall.

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Exchange Rates and the Open Economy

Exchange Rates and the Open Economy. Chapter 17 (last chapter!). Chapter 17 Learning Objectives. You should be able to:. Distinguish between fixed and flexible exchange rates. Indicate the difference between depreciation and devaluation (and appreciation and revaluation).

450 views • 15 slides

Relationships among Inflation, Interest Rates and Exchange Rates

8. Relationships among Inflation, Interest Rates and Exchange Rates. Chapter Objectives This chapter will: A. Explain the purchasing power parity (PPP) theory and its implications for exchange rate changes

435 views • 15 slides

Relationships among Inflation, Interest Rates and Exchange Rates

8. Relationships among Inflation, Interest Rates and Exchange Rates. Chapter Objectives This chapter will: A. Explain the purchasing power parity (PPP) theory and its implications for exchange rate changes

639 views • 15 slides

Ec 123 Section 8

Ec 123 Section 8. THIS SECTION Case. Mexico: From Stabilized Development to Debt Crisis NEXT Hong Kong Financial Crisis. Currency Exchange ($ for Peso) (Mexico Perspective). Price of Peso in Dollars. Supply of Peso to $ exchange comes from Mexicans: Buying U.S. Imports

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