Discuss the determinants of foreign exchange rates

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Discuss the determinants of foreign exchange rates. Include a detailed discussion of the Monetary PPP model: e* = Pi – Pj = [M, p, r], and its addition of (a, w) to determine the spot rate [e].

Reference no: EM131087690

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Discuss the determinants of foreign exchange rates : Discuss the determinants of foreign exchange rates. Include a detailed discussion of the Monetary PPP model: e* = Pi – Pj = [M, p, r], and its addition of (a, w) to determine the spot rate [e].

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