Question
1. As of March 18, 2009, the exchange rate between the Turkish Lira and U.S. dollar is YTL1.70/$. The consensus forecast for the U.S. and
1. As of March 18, 2009, the exchange rate between the Turkish Lira and U.S. dollar is YTL1.70/$. The consensus forecast for the U.S. and Turkey inflation rates for the next 1-year period is 1.3% and 8.5%, respectively. How would you forecast the exchange rate to be at around March 18, 2010? What is the expected rate of change in exchange rate?
- Using the approximation formula
- Using the exact formula
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Currency Wars Offense And Defense Through Systemic Thinking
Authors: Jeffrey Yi-Lin Forrest , Yirong Ying , Zaiwu Gong
1st Edition
3319677640,3319677659
