In 1990, the France's Consumer Price Index (CPI) was 67.4 and the British CPI was 55.1. In

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In 1990, the France's Consumer Price Index (CPI) was 67.4 and the British CPI was 55.1. In 2018, each country's CPI was 103.1 and 106.0, respectively. If economists expect that the inflation this year will match its average annual compound (geometric) inflation rate between 1990 and 2018, and the current spot rate is EUR1.1911/GBP, what is the expected spot exchange rate in one year if relative purchasing power parity holds?

Posted Date: Jun 12, 2024 09:11 AM

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In 1990, the France's Consumer Price Index (CPI) was 67.4 and the British CPI was 55.1. In

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