ECM171: Task 2

The report

Assess the performance of ONE theory that can be used to predict foreign exchange.   These can include Purchasing Power Parity (PPP) – absolute and relative, Uncovered Interest Parity (UIP), the monetary model, behaviour models, those using capital flows or any other that you find credible. You should clearly explain the theory and test how useful this theory is using the exchange rate of your choice.   Does the exchange rate that you have chosen act in the way that the theory says it should?   The time frame used to assess the theory should be appropriate to that theory.   Some are short-term, some are medium-term and some only apply in the long-run.

Learning outcomes being assessed

You will need to be able to show that you can:

•             make critical use of relevant economic theory and models;

•             source and manipulate appropriate economic data;

•             present ideas clearly and effectively;

Marking Criteria check attached file for complete details.

make you followed the Marking Criteria Distinction 90-100 , Harvard references.

I need high quality work please. see attached file for details.