$($c$)$ The exchange rate of the British Pound against the dollar since the global financial crisis has followed this path:

$\backslash$table$[[$Average for month:,GBP per $US$],[$Mar$-08,0\mathrm{.}4995],[$Mar$-09,0\mathrm{.}70607],[$Dec$-14,0\mathrm{.}63779]]$

Is this evidence of overshooting? If yes, is it an indication that the Dornbusch model may be correct i$.$e$.$ a good explanation of how exchange rates behave? If not, why not?

$(40$ marks$)$