Chapter 19 :

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McGraw-Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved Chapter 19: What Determines Exchange Rates?

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Chapter 19 : . What Determines Exchange Rates?. Figure 19.1 Selected Exchange Rates, 1970-2011 (Monthly). Figure 19.1 Selected Exchange Rates, 1970-2011 (Monthly). Exports Plus Imports as a Percentage of GDP. Figure 19.2 Determinants of the Exchange Rate in the Short Run. - PowerPoint PPT Presentation

Transcript of Chapter 19 :

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McGraw-Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved

Chapter 19:

What Determines Exchange Rates?

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Figure 19.1 Selected Exchange Rates, 1970-2011 (Monthly)

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Figure 19.1 Selected Exchange Rates, 1970-2011 (Monthly)

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Exports Plus Imports as a Percentage of GDP

Figure 19.2 Determinants of the Exchange Rate in the Short Run

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Figure 2.2 The Market for Motorbikes: Demand and Supply

National Income per Capita, 2009, Relative to the United States = 100

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Figure 19.3 Relative Purchasing Power Parity: Inflation Rate Differences and Exchange-Rate Changes, 1975-2009

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Figure 19.3 Relative Purchasing Power Parity: Inflation Rate Differences and Exchange-Rate Changes, 1975-2009

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Figure 19.4 Actual Exchange Rates Consistent with Relative PPP, Monthly,

1975-2011

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Figure 19.4 Actual Exchange Rates Consistent with Relative PPP, Monthly,

1975-2011

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Figure 19.5 Overview of Key Elements, Exchange-Rate Overshooting

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Figure 19.6 Exchange-Rate Path, Exchange-Rate Overshooting

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Nominal and Real Effective Exchange-Rate Values for the U.S. Dollar, 1975-2011