1. Is a current account deficit always associated with a strong real exchange rate (that is, one in which the currency is overvalued compared to the PPP prediction)?
2. Describe how three macroeconomic fundamentals affect exchange rates.
3. Which simple statistical model yields some of the best exchange rate predictions available? What does this imply for the value of models of exchange rate determination to multinational businesses?
4. What is chartism?
5. What is an x% filter rule?
6. What is a moving-average crossover rule?
7. Have currency traders been successful in exploiting their exchange rate forecasts?
8. Are devaluations of pegged exchange rates totally unexpected?
9. Construct a list of a country's economic statistics you would assemble to help determine the probability of a devaluation of its currency within the coming year.