International Finance (Exchange Rate) Project

The Exchange Rate Project ( JYP/GBP ) - The Japanese Yen/ British Pound.    

When you submit your project it must consist of: 

· An Executive Summary (5%) 

· A brief background essay on each countries’ key exports and imports (comparative advantages), including some focus on direct trade between the two countries (20%) 

· A self-constructed time-series graph showing the exchange rate movements (Starting from September 4th)—including callouts indicating when major news items occurred which affected the exchange rate. This should provide prima facie evidence whether or not this forex market is efficient (20%)

· A brief description of which regime is being used (fixed, floating, etc). which forex markets exist (spot, forward, futures, options, etc) in which locations, when they are open, trading volumes, etc. A map can be illustrative! (10%) 

· A series of investigative research essays, examining the key theories including: 

· PPP (both absolute and relative) 

· The Fisher Effect 

· IFE 

· IRP 

· The degree of market efficiency. (30%)

Note that each element of the essay must consist of both application of the data you have been collecting as well as support from existing studies. 

· As an appendix: a database showing all of the raw data you have used including the exchange rate, other data and news items (10%)

· A complete and properly formatted (Harvard) Bibliography (5%) 

Do not regard the above as a complete list. You should feel free to include any other information you believe to be relevant. 

Essay Length: 3500 words

Submission date: Wednesday, November 28, 2018