Assignment:
Critical Thinking: Saudi Arabia's Currency and the U.S. Dollar
While Saudi Arabia seeks to diversify its economy, the Saudi economy is dominated by the petroleum sector. In addition, the Saudi Arabian Riyal (SAR) is pegged to the U.S. Dollar.
In a critical essay, indicate the main considerations Saudi Arabia faces from a currency perspective (e.g., currency values, interest rates, inflation, and trade issues) that ensue given two scenarios:
- The first scenario is a dramatically declining world oil price.
- The second scenario is a dramatically increasing world oil price.
Directions:
- Your essay is required to be 4 to 5 pages in length, which does not include the title page, abstract or required reference page, which are never a part of the content minimum requirements.
- Support your submission with course material concepts, principles and theories from the textbook and at least three scholarly, peer-reviewed journal articles. Use the Saudi Digital Library to find your resources.
- Use Saudi Electronic University academic writing standards and APA style guidelines.
Required
International Economics
Duran, H. E. (2016). Exchange rate movements and its local effects: Turkey case. International Journal of Economics and Financial Issues, 6(2), 442-449.
Jedruchniewicz, A. (2014). Money supply as the target of the central bank. Folia Oeconomica Stetinensia, 14(1), 116-136.
Ali, M. (2016). Global imbalances and asymmetric returns to US foreign assets: fitting the missing pieces of the US balance of payments puzzle. International review of applied economics, 30(2), 167-187.
Kumhof, M., & Yan, I. (2016). Balance of payments anti-crises. Journal of Macroeconomics, 48, 186-202.
Other relevant sources.
Readings:
1. MONEY SUPPLY AS THE TARGET OF THE CENTRAL BANK
By Andrzej Jedruchniewicz
2. Global imbalances and asymmetric returns to US foreign assets: fitting the missing pieces of the US balance of payments puzzle
By Mona Ali
3. Exchange Rate Movements and its Local Effects: Turkey Case
By Hasan Engin Duran
Attachment:- Exchange Rate Determination.zip