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Exercise 2 with IMF data S05 doc 2003 Report on Admission - web grinnell

Exercise 2 with IMF data S05 doc 2003 Report on Admission - web grinnell-2025

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The document outlines an exercise for students in an International Economics course, focusing on exchange rate determination models. It guides students through data retrieval from the IMF database, analysis using Excel, and interpretation of results related to purchasing power parity (PPP) and interest rates. The exercise emphasizes calculating exchange rates, interest rate differentials, and the marginal propensities to save and import for a selected country compared to the United States. Students are tasked with interpreting their findings to assess currency valuation and its impact on trade balance.

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