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[FX forcasting using Purchasing Power Parity] The expected inflation rate until the end of next year, 2017, is 2% in the US, and 12% in
[FX forcasting using Purchasing Power Parity] The expected inflation rate until the end of next year, 2017, is 2% in the US, and 12% in Argentina, respectively. The current spot exchange rate between Argentina peso (AP) and the US dollar is AP15.0/$. What will be the expected exchange rate between Argentina peso (AP) and the US dollar at the end of 2017? Explain why.
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