Economics Homework Help

ECON 372 GU International Economics Finance Questions

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plz answer the two questions and each one should be 1000 words, so the total words should be 2000 words.

Instructions: you will write two (2) blog posts of approximately 1000-1200 words, one by each of the due dates listed below, on questions chosen from the following lists. You must post your blog entries on Canvas (see below for more details).

1st Blog Essays

What does the German Hyperinflation teach us about the role of money in determining the exchange rate?Use the Frankel (1976) to explain how money supply influences the exchange rate.In your answer be sure to discuss the interest rate parity condition as well as the impact of money on prices.Why does Frankel’s findings lend support for PPP?Be sure to explain how Frankel estimates the exchange rate in his paper.

Is monetary expansion/contraction neutral in its effect on economic activity?Use the Lucas paper to discuss ideas and evidence as to why changes in the money supply may or may not impact economic activity.

2nd Blog Essay

Using Frankel’s 1979 paper, explain the monetary theory of exchange rates.Be sure to detail each variable appropriately.Then detail how he/they tested the theory.What did they conclude?