Question
International Fischer Forecasts.Use the table LOADING... (7) containing economic, financial, and business indicators to answer the following questions. Assuming International Fischerone version of Purchasing Power
International Fischer Forecasts.Use the table
LOADING... (7)
containing economic, financial, and business indicators to answer the following questions. Assuming International
Fischerone
version of Purchasing Power
Parityapplies
to the coming year, forecast the following future spot exchange rates using the government bond rates for the respective country currencies:
a. Japanese yen/U.S. dollar in one year
b. Japanese yen/Australian dollar in one year
c. Australian dollar/U.S. dollar in one year
The table below contains economic, financial, and business indicators from 2015:
| Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States |
| ||||||||||||||
| Industrial | Unemployment | ||||||||||||||
| Gross Domestic Product | Production | Rate | |||||||||||||
| Forecast | Forecast | ||||||||||||||
| Country | Latest Qtr | Qtr | 2015e | 2016e | Recent Qtr | Latest | |||||||||
| Australia | 4.1 | % | 3.9 | % | 4.9 | % | 3.5 | % | 4.8 | % | 4.5 | % | |||
| Japan | 1.7 | % | -1.7 | % | 2.1 | % | 1.9 | % | 4.3 | % | 3.8 | % | |||
| United States | 2.5 | % | 3.8 | % | 2.1 | % | 2.2 | % | 1.9 | % | 4.7 | % | |||
| Consumer Prices | Interest Rates | ||||||||||||||
| Forecast | 3-month | 1-yr Govt | |||||||||||||
| Country | Year Ago | Latest | 2015e | Latest | Latest | ||||||||||
| Australia | 4.5 | % | 2.4 | % | 2.7 | % | 6.92 | % | 6.22 | % | |||||
| Japan | 0.9 | % | -0.2 | % | 0.0 | % | 0.72 | % | 1.63 | % | |||||
| United States | 2.6 | % | 2.9 | % | 2.9 | % | 4.72 | % | 4.51 | % | |||||
| Trade |
| ||||||||||||||
| Balance | Current Account | Current Units (per US$) | |||||||||||||
| Last 12 mos | Last 12 mos | Forecast 15 | |||||||||||||
| Country | (billion $) | (billion $) | (% of GDP) | Oct 17th | Year Ago | ||||||||||
| Australia | -13.2 | -46.9 | -5.7 | % | 1.11 | 1.35 | |||||||||
| Japan | 98.6 | 197.4 | 4.7 | % | 115.00 | 121.00 | |||||||||
| United States | -810.7 | -793.1 | -5.7 | % | 1.00 | 1.00 | |||||||||
| Note: Unless otherwise noted, percentages are percentage changes over one year. Rec Qtr = recent quarter. Values for 2015e are estimates or forecasts. | |||||||||||||||
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