7. The following graph shows the Hungarian forint (HUF) per U.S. dollar (USD) exchange rate for 20082017.

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7. The following graph shows the Hungarian forint (HUF)

per U.S. dollar (USD) exchange rate for 2008–2017.

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The table that follows shows the real interest rates in the United States and Hungary during the same period.
What could explain why the Hungarian forint depreciated between 2008 and 2017 with respect to the U.S. dollar?
Explain your answer with the help of the information given in the table.

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Related Book For  book-img-for-question

Macroeconomics

ISBN: 125389

3rd Global Edition

Authors: Daron Acemoglu ,David Laibson ,John List

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