9. Forecasting the Argentine Peso. As illustrated in the graph below, the Argentine peso moved from its fixed exchange rate of Ps1.00/$ to over Ps2.00/$ in a matter of days in early January 2002. After a brief period of high volatility, the peso's value appeared to settle down into a range varying between 2.0 and 2.5 pesos per dollar.

If you were forecasting the Argentine peso fur- ther into the future, how would you use the informa- tion in the graphic-the value of the peso freely floating in the weeks following devaluation-to fore- cast its future value? Forecasting the Pan-Pacific Pyramid Use the table on the next page containing economic, finan- cial, and business indicators from the October 20, 2007, issue of The Economist (print edition) to answer problems 10 through 16.

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2.25 Daily Exchange Rates: Argentine Pesos per U.S. Dollar 2.00 1.75 1.50 1.25 1.00 0.75 26 2 9 16 23 30 6 13 20 27 Source: 2007 by Prof. Werner Antweiler, University of British Columbia, Vancouver, BC, Canada.