1 On the international nancial adjustment Suppose you are analyzing an open economy over an horizon of four years: t = 1, 2, 3, 4. Let the current account (CA) and net foreign assets (N F A) for this period be: CA1 = 30, NFAl = 100; CA2 = 20, NFA2 = 125; CA3 = 10, NFA3 = 130; CA4 = 15, NFA4 = 160. 1. Calculate the valuation effects (VAt) for each year t 2 2. 2. Assuming that output/ GDP is Q2 = 80, Q3 = 100, Q; = 120, do a simple table with the average valuations and current accounts (period t 2 2) as in Table 10.2 from Gourinchas and Rey (2014 HIE), which is on the lecture slides \"Globalization and Balance of Payments Accounting.\" Also, indicate what each of the two averages you obtained represent. 3. Repeat the same exercise as in the previous item but for an initial subsample period; that is, compute the averages for the years 2-3. 4. Interpret your results