Zimbabwean Devaluation. As illustrated in the graph at the top of this page, the Zimbabwe dollar depreciated against the euro from ZWD 460.52 to ZWD 515.49 in a span of three months. After a brief period of high volatility, the Zimbabwean dollar appeared to settle down into a range varying from 501 to 515 Zimbabwean dollars per euro. If you were forecasting the Zimbabwean dollar further into the future, to December 5, 2010, how would you use the information in the graphic—the value of the Zimbabwean dollar freely floating in the weeks following devaluation—

to forecast its future value?

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09/12/2010 09/13/2010 09/14/2010 460 09/15/2010 09/16/2010 09/16/2010 09/18/2010 09/19/2010 520 510 500 490 480 470 09/20/2010 09/21/2010 09/22/2010 09/23/2010 09/24/2010 09/25/2010 09/26/2010- Problem 9.5: Zimbabwean Devaluation Zimbabwean dollar (ZWD) = 1.00 euro () 09/27/2010 09/28/2010 10/29/2010 10/30/2010 10/01/2010 10/02/2010 10/03/2010 10/04/2010- 10/05/2010 10/06/2010 10/07/2010 10/08/2010 10/09/2010 10/10/2010 10/11/2010 10/12/2010 10/13/2010 10/14/2010 10/15/2010 10/16/2010 10/17/2010 10/18/2010 10/19/2010 10/20/2010 10/21/2010 10/22/2010 10/23/2010 10/24/2010 10/25/2010 10/26/2010 10/27/2010 10/28/2010 10/29/2010 10/30/2010 11/01/2010 11/11/2010 11/02/2010 11/03/2010 11/04/2010