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Article Response 3 - explain the subject matter of the...

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Article Response #3 Anthony Cao Bing Chen Article Title: U.S. dollar recovers after sharp selloff Article Source and Date: The Market Watch, April 11 th , 2011 Economic Topic (and Chapter): Chapter 18 – Open-Economy Macroeconomics What is the article about? Briefly summarize the issues in a non-technical way The article focuses on the current exchange rates and strengths of currencies in relation to the dollar. It discusses how recent events, including another earthquake in Japan and the near-shutdown of the US government, have affected the strength of the dollar. It also notes the current dangers in investing in these currencies because of the high-risk level. What are the economics of the article? How does a recent topic covered in the course
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Unformatted text preview: explain the subject matter of the article? The article explains the open-economy macroeconomics of the foreign exchange markets. Moreover, purchasing power parity analysis can be done in reference to the values given in the article. All of the changes in the current exchange rates, especially with respect to the dollar vs. the yen/euro, can be evaluated in the context of what we have learned in class during the past week in conjunction with the recent events. The falling Euro and the disaster-stricken yen all have major factors in the current exchange rate with the dollar....
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