Your task is to select two countries, analyze their currencies and write an analytical report: Economics Report, UCD, Ireland
| University | University College Dublin (UCD) |
| Subject | Economics |
Your task is to select two countries, analyze their currencies and write an analytical report. In the report, you shall:
- Define the base and foreign currencies.
- Utilise two quantitative methods (e.g. PPP, UIP, CIP) to model, explain and forecast the exchange rate between the base and foreign currencies defined in Part i.
- Demonstrate the method you adopt, including the economic theory behind the methodology, assumption(s), advantage(s), and limitation(s).
- Explain whether you anticipate the foreign currency to appreciate, depreciate or remain relatively stable in the short-term and long-term.
- Outline any limitations in your conclusion regarding your anticipation in Part iv.
