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Unformatted text preview: As illustrated in the graph below, the Argentine peso moved from its fixed exchange rate of Ps1.00/$ to over Ps2.00/$ in a matter of days in early January 2002. After a brief period of high volatility, the peso's value appeared to settled down into a range varying between 2.0 and 2.5 pesos per dollar. If you were forecasting the Argentine peso further into the future, how would you use the ifnormation in the graphic -- the value of the peso freely-floating in the weeks following devaluation -- to forecast its future value? Source: 2002 by Prof. Werner Antweiler, University of British Columbia, Vancouver, BC, Canada. Time period shown in diagram: Jul 1, 2000 - Jan 27, 2002....
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This note was uploaded on 07/27/2011 for the course ECON 101 taught by Professor Dr. during the Spring '11 term at Columbia Union.
- Spring '11