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Longer-Term Exchange Rate Anchors
Walsh; Kieran J.Technical Note DARDEN-GEM-0170-EEconomicsThe goal of this technical note is to give students tools for thinking about how exchange rates will move over a period of five years into the future. While forecasting exchange rates is arguably more art than science; managers; policymakers; and investors are nonetheless often required to form opinions about the future evolution of exchange rates. Specifically; this note defines the real exchange rate and purchasing power parity (PPP) and illust...Starting at €8.20