HOMEWORK > Economics 122: International Finance,Winter 2017


University of California, Los Angeles ECON 122 Question 1: As of November 1, 1999, the exchange rate between the Brazilian real and U.S. dollar is ER/$ = 1.95. The consensus forecast for the U.S. and Brazil inflation rates for the next 1- year period is 2.6% and 20.0%, respectively. Assuming that relative PPP holds, what would you forecast the exchange rate to be at a ...[Show More]

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