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are figure 2a and 2b consistent with the uncovered interest parity and the monetary model , why 2. [5 points] are Figures 2a and Figure

are figure 2a and 2b consistent with the uncovered interest parity and the monetary model , why

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2. [5 points] are Figures 2a and Figure 2b consistent with uncovered interest parity and the monetary model? Explain why. .2 .4 ISL TUR depreciation rate, 70-98 .1 GRE PRT SWE NZL ESP CANIN AUR PH GBR 0 -USAONK NOR BEL DEU AUT NTL JPNCHE depreciation rate, 70-98 .2 ISL GRE PRT SWE NZL ITL ESP 0 GBR DNK PFRA FIN CANS USA NOR IRL BEL LUX -.1 CHE DEU-AUT JPN .05 .1 relative money growth, 70-98 .15 2 -.02 0 relative output growth, 70-98 .02 depreciation rate and money growth depreciation rate and output growth (a) Depreciation rate and money growth (b) Depreciation rate and output growth Figure 2

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