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Hi I have a question: Suppose it is widely expected that the U.S. economy will grow faster than the Japanese economy, have higher inflation, have
Hi I have a question:
Suppose it is widely expected that the U.S. economy will grow faster than the Japanese economy, have higher inflation, have a greater growth in money supply, and have low and declining interest rates. Given these expectations, what do the various approaches to exchange rates predict about the value of the dollar?
I am having a hard time understanding the logic behind each prediction. Can you please explain?
Thank you!
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