Interest Rates:

Exchange rates:

I need some help putting this problem in Excel. If you could help me with the first data from 1974-1975 I can work my way around in Excel. But at the moment, I don't know how to proceed.

Problem statement This assignment requires you to test UIP using a dataset of 24 countries over the period 1974- 2006. Approach aw data on exchange rates and interest rates are in the file "imf assignment uip.xls". Use Germany as the benchmark count Test UIP using time-series analysis: look at whether interest rate differentials between countries match changes in the corresponding exchange rates (in the empirical work, instead of the expected exchange (which we do not know), you should use the realized value) do not discuss all countries separately but make a selection of a few countries which you find interesting Clearly specify the null hypothesis and use regression analysis to test your null hypothesis (this can be done in Excel). Problem statement This assignment requires you to test UIP using a dataset of 24 countries over the period 1974- 2006. Approach aw data on exchange rates and interest rates are in the file "imf assignment uip.xls". Use Germany as the benchmark count Test UIP using time-series analysis: look at whether interest rate differentials between countries match changes in the corresponding exchange rates (in the empirical work, instead of the expected exchange (which we do not know), you should use the realized value) do not discuss all countries separately but make a selection of a few countries which you find interesting Clearly specify the null hypothesis and use regression analysis to test your null hypothesis (this can be done in Excel)