Chapter 19 :
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Transcript of Chapter 19 :
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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