Exchange rate determination is extremely important in the theory of monetary economics, and we'll look at some theories of exchange rates tomorrow. Get the slides here, a mathematica notebook for the lecture is here, and the data I used on exchange rates are here. Play about with it to get a sense of what's happening. Here's the Wolfram|Alpha code, too. Messing about with these online toys is a great way to understand CIP and UIP better. Finally, Stockman's (1978) theory of exchange rate determination is here. The important reading for this lecture is Mishkin, chapter 19. Here's a recording of the lecture.
Dear Professor,
Can you please put the recording of this lecture online?
Thank you very much.
Hi Ali, lecture is up here: http://www.vimeo.com/9908360