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Suppose over the next 20 years annual inflation in Brazil will be 6% and that of the US will be 2%. a. In the absence
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Suppose over the next 20 years annual inflation in Brazil will be 6% and that of the US will be 2%. a. In the absence of other shocks, what should be the average annual depreciation of the Brazilian real vs the US Dollar? b. In which country should the nominal interest rate be higher over the next 20 years?
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