459hw06

459hw06 - 103.2 100.3 118.96 2007 106.2 100.3 112.45 2008...

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

View Full Document Right Arrow Icon
Brigham Young University Department of Economics Economics 459 - International Finance Homework #6 Due 2/29 Name: Real Exchange Rates 1. Use the Penn World Tables (http://pwt.econ.upenn.edu) to help in pinning down the real exchange rate in a base year (2005). Year 2005 real exchange rate: q = year US CPI Japan CPI ¥/$ * 1989 63.5 91.3 143.45 1990 66.9 94.1 134.40 1991 69.7 97.3 125.20 1992 71.8 98.9 124.75 1993 74.0 100.2 111.85 1994 75.9 100.8 99.74 1995 78.0 100.7 102.83 1996 80.3 100.8 116.00 1997 82.2 102.7 129.95 1998 83.5 103.3 115.60 1999 85.3 103.0 102.20 2000 88.2 102.2 114.90 2001 90.7 101.5 131.80 2002 92.1 100.6 119.90 2003 94.2 100.3 107.10 2004 96.7 100.3 104.12 2005 100.0 100.0 117.97 2006
Background image of page 1

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

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

Unformatted text preview: 103.2 100.3 118.96 2007 106.2 100.3 112.45 2008 110.2 101.7 91.28 2009 109.2 100.3 98.98 2010 111.7 99.6 82.63 2011 115.2 99.9 76.96 * note this is 1/e 2. Using your numbers from question 1, calculate the value of GDP per capita in both the U.S. and Japan in comparable numbers. Use the following information. Compare your results with a conversion based on the exchange rate alone. How far off are such simple estimates in %? US GDP 2010: 14.552 trillion $ Japan GDP 2010: 477.33 trillion US population 2010: 311.59 million people Japan population 2010: 127.45 million people Japan GDP in $ (real exchange rate based conversion) Japan GDP in $ (nominal exchange rate only conversion) percent difference:...
View Full Document

This note was uploaded on 02/29/2012 for the course ECON 459 taught by Professor Phillips,k during the Winter '08 term at BYU.

Page1 / 2

459hw06 - 103.2 100.3 118.96 2007 106.2 100.3 112.45 2008...

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