a) Identify trends or other patterns in inflation within the an economy of your choice over the last five (5) years using quarterly data from the Central Bank or other Government based Statistical agency websites as a source. You must include data to justify the trends described.
b) Provide an explanation for the trends/patterns identified. You must have evidence to support your explanations. (Approximately 500 words for the explanation)
a) Identify patterns/trends in the exchange rate of your chosen country’s currency against the US dollar from January 1, 2011 to August 31, 2011. You must include data to justify the trends described. NOTE: Use daily data for this.
b) Using theory covered in Chapter 31: Open-economy macroeconomics: Basic concepts; Gans, King, Stonecash and Mankiw, 2012, Principles of Economics, 5th edition, Cengage Learning, (or Chapter 14, Stonecash, Gans, King and Mankiw, 2012, Principles of Macroeconomics, 5th edition, Cengage Learning; or Chapter 31, Mankiw (2012) , Principles of Economics, 6th edition , South-Western Cengage Learning.) Suggest the impact of the changes in the exchange rate for the country identified in part (a) of this problem on the level of Net Exports and Net Foreign Investment over the coming months.