Discuss the flexible price monetary model of exchange rate determination and its ability to explain foreign exchange movements. How realistic is the assumption that prices are fully flexible? Does this model perform well when tested empirically?

International Finance

Project description
Discuss the flexible price monetary model of exchange rate determination and its ability to explain foreign
exchange movements. How realistic is the assumption that prices are fully flexible? Does this model
perform well when tested empirically?
Word Limit: 1500 words
Essay Coursework Deadline: Tuesday 17th March 2015

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