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Explain the concept of currency risk

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Reference no: EM133184018

1) Why is per-capita income NOT always the best indicator of an emerging market's potential? What does the concept of purchasing power parity (PPP) suggest?

2) Explain the concept of currency risk. How can inflation and interest rates create currency risk?

3) Briefly explain gold standard and Bretton Woods system.

Reference no: EM133184018

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