Question
Inflation is expected to be 5% in Mexica and 8% in Argentina. The future MEX/ARS is expected to be 2.7 (ie 1 Mexican peso =
Inflation is expected to be 5% in Mexica and 8% in Argentina. The future MEX/ARS is expected to be 2.7 (ie 1 Mexican peso = 2.7 Arg. Pesos).
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Based on these two expected inflation rates, which of the two currencies is supposed to depreciate and why?
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Using the relative PPP formula, compute what the current exchange rate for MEX/ARS should be
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Machine Learning In Finance From Theory To Practice
Authors: Matthew F Dixon, Igor Halperin, Paul Bilokon
1st Edition
3030410676, 978-3030410674
