Suppose that the exchange rate between the polish zloty and


Suppose that the exchange rate between the Polish Zloty and the U.S. dollar is currently 4 Zls to the dollar. The one year forward rate for the Zloty is 4.5 Zls to the dollar. If U.S. inflation is 3% what is the approximate Polish inflation rate if relative purchasing power holds?

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Econometrics: Suppose that the exchange rate between the polish zloty and
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