Problem
Not all pegs are created equal! In this question you will explore trends in exchange rates. Go to the St. Louis Federal Reserve's Economic Data (FRED) website and download the daily United States exchange rates with Thailand, India, China, and Hong Kong. These can be found most easily by searching for the country names and "daily exchange rate."
1. Plot the Thai baht, Indian rupee, and the Chinese yuan to U.S. dollar exchange rate over this period from 1985 to the present. Include your graphs in your answers/solutions that you'll upload to Brightspace.
2. For what years does the baht, rupee, and yuan appear to be pegged to the dollar? Does this peg break? If so, how many times?
3. How would you characterize the relationship between both the baht and rupee and the dollar from 1998-2008? Does it appear to be fixed, crawling, or floating during this period? How would you characterize it from 2008 onward?
4. The Hong Kong dollar has maintained its peg with the United States dollar since 1983. Over the course of the period that you have downloaded (1985 to the present) what are the highest and lowest values for this exchange rate? Include your graph in your answers/solutions