Class 15 Rev Exchange Rate Discussion Outline

Class 15 Rev Exchange Rate Discussion Outline - Class 15...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Class 15 Exchange Rate Discussion Outline For Exchange Rate history: http://www.oanda.com/currency/historical-rates/ a. S $’s = $ value of US imports = OC currency value of OC exports b. D $’s = $ value US exports = OC currency value of OC imports 2) Factors affecting E: Long term factors—pertain to the real economy a. Shifts in $ Supply a.i. a.ii. Increase in wealth of US residents a.iii. increase in OC productivity decrease cost of OC goods a.iv. Decrease in risk of OC assets a.v. Expected devaluation of $ US b. Shifts in $ Demand b.i. b.ii. Increase in wealth of OC’s b.iii. increase in US productivity decrease cost of US goods b.iv. decrease in risk of US assets b.v. expected appreciation of $ US 3) Factors affecting E: Short term factors—pertain to the relative value of financial instruments
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Class 15 Rev Exchange Rate Discussion Outline - Class 15...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online