2. Analyze the data from China, Japan, Switzerland, Indonesia, Ukraine, and Taiwan (6 countries), and fill in the table as follow showing overvalued and undervalued currencies. (10%) Write a conclusion stating why PPP doesn't hold true according to the actual data. (10%) Country Implied PPP of the dollar 1 United States China Indonesia Switzerland Ukraine Taiwan Local price 5 20 30000 6.5 54 69 Actual exchange rate 1 6.8 14000 0.9 28 30 dollar Under/over against the dollar 0% valuation

2. Analyze the data from China, Japan, Switzerland, Indonesia, Ukraine, and Taiwan (6 countries), and fill in the table as follow showing overvalued and undervalued currencies. (10%) Write a conclusion stating why PPP doesn't hold true according to the actual data. (10%) Country Implied PPP of the dollar 1 United States China Indonesia Switzerland Ukraine Taiwan Local price 5 20 30000 6.5 54 69 Actual exchange rate 1 6.8 14000 0.9 28 30 dollar Under/over against the dollar 0% valuation

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter19: The International Monetary System: Order Or Disorder

Section: Chapter Questions

Problem 8DQ

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