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/? spot exchange rate is 114/?. The 1 year expected inflation rate is 3% in Japan, and 5% in Euroland, respectively. All others being equal,

¥/� spot exchange rate is ¥114/�. The 1 year expected inflation rate is 3% in Japan, and 5% in Euroland, respectively. All others being equal, if the actual (ex post) nominal exchange rate turns...

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