Question
Consider the cases of the US and the EU, which you have researched on the internet for information related to the balance of payments and
Consider the cases of the US and the EU, which you have researched on the internet for information related to the balance of payments and to the corresponding movements in the foreign exchange movements. Explain their evolution over a period of three years. Considerwhether their current account and capital/financial account deficit/surplus cause the country'scurrency to strengthen or weaken on the foreign exchange market. Justify your answers by providing details of what has happened in practice during the last two decades (please, pay special attention to any crises that may have affected the currencies during these years).
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