Question
Go tohttps://fred.stlouisfed.org/ and click on the Category link under the search box. Go to Money, Banking, & Finance and then Exchange Rates. Now click on
Go tohttps://fred.stlouisfed.org/ and click on the "Category" link under the search box. Go to "Money, Banking, & Finance" and then "Exchange Rates". Now click on "Trade-Weighted Indexes" and go to the series "Trade Weighted US Dollar Index: Broad, Goods (DISCONTINUED)". (NOTE: This data was discontinued in 2019 and transferred to another data series. However, this question is about historical patterns of the US dollar for which we need this older data.)
1. Click on the "Notes" tab and describe what this series represents.
2. For the following time periods, state whether the trade weighted US dollar exhibited an appreciating or depreciating trend: 1980-2002, 2002-2008, 2008-2019.
3. Consider the overall trend in the US dollar between 2008 and 2019 from part b above. Do you think this should have been good or bad for US businesses that export goods? Explain your answer.
4. Go back to "Trade-Weighted Indexes" and now click on the series "Nominal Broad US Dollar Index". This is the update to the data series that you used in parts a - c. What happened to the value of the US dollar in 2020? What has been the trend since 2021?
https://fred.stlouisfed.org/
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