Question
Please see the data provided below for the decline in the AUD against the USD during the global financial crisis (see 2008Q2 to 2009Q1) Calculate
Please see the data provided below for the decline in the AUD against the USD during the global financial crisis (see 2008Q2 to 2009Q1) Calculate the percentage change in the USD/AUD exchange rate over this period. Can the PPP theory explain the reason for the decline?
| Date | Exchange Rate | Real GDP Growth Rate (%) | Rates of Inflation (%) | Interest Rate (%) | |||
| USD/AUD | United States | Australia | United States | Australia | United States | Australia | |
| 3/30/2009 | 0.680 | -3.282% | 1.553% | -0.184% | 2.323% | 2.711% | 4.226% |
| 12/30/2008 | 0.691 | -2.540% | 1.675% | 1.596% | 3.695% | 3.227% | 4.802% |
| 9/30/2008 | 0.789 | 0.242% | 2.640% | 5.253% | 4.989% | 3.848% | 5.966% |
| 6/30/2008 | 0.960 | 1.380% | 3.009% | 4.310% | 4.447% | 3.866% | 6.366% |
| 3/28/2008 | 0.919 | 1.447% | 3.372% | 4.137% | 4.268% | 3.659% | 6.153% |
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Macroeconomics Policy And Practice
Authors: Frederic Mishkin
2nd Edition
0133424316, 978-0133424317
