exchange rate

Briefly explain the main economic rationale behind the Swiss National Bank’s (SNB) decision to intervene in the foreign exchange market in response to such a strong demand for franc.

Macroeconomics: theory and applications Question 1 Using an appropriate version of the IS/LM/BP model, demonstrate which of the curves in the model would shift in response to the fall in the world interest rates (iw). Also, show how this would affect Switzerland’s BP position: you must clearly explain if it is a BP surplus or […]

Summarise the history of the exchange rate regime of a particular country. Discuss three relationships that describe the behaviour of exchange rate (CIP, PPP, IFE);

Content requirements: Students are required to address three parts in the main body of this essay and content details are as blow: 1. Summarise the history of the exchange rate regime of a particular country. 2. Discuss three relationships that describe the behaviour of exchange rate (CIP, PPP, IFE). 3. Estimate the PPP between a […]

Compare what it has done and how it has done (from an economic standpoint) compared to a neighboring or similar nation that has had the benefit of being able to chart its own course with respect to interest rates.

One of the things we learned about in class is the trilemma which states that if a country pegs its exchange rate to a base country’s currency and allows the free flow of capital in and out of the country, then it follows that the country’s interest rate will be the same as that of […]

Identify risks related to changes in the exchange rate from a management perspective.

Complete the following: 1. Examine the concept of the exchange rate between the Japanese yen and the U.S. dollar. Choose a Japanese company, such as Toyota, Canon, or Mitsubishi, and identify a strategy that the company might consider to reduce its currency exchange risk associated with Japanese and U.S. currencies. 2. Write an analysis in […]

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