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Requirement iv: talks about “concerns about the methodology used to estimate the expected EXCHANGE RATES IN ii)”
Where actually it was concerns about INFLATION RATES METHODOLOGY
I discussed the exchange rate methodology giving details on PPP theory with only a few lines on inflation methodology.
I was out of subject but actually the requirement is not clear…
Please advise how I should go about if something like this happens during the exam in March?
As I replied you one of your other posts, I am not yet able to view the December 2023 exam.
However PPP is forecasting future spot rates using the relative rates of inflation (and if it was asked about in December then it is rather less likely that it will be asked about again in March 🙂 )
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