SESSION TWO                              

Topic:  Exchange rate systems and parity theories

Objective:   We will examine different currency regimes and the justification behind these alternative approaches to setting currency values. Any attempt to provide material prior to the session will mean that it is outdated before we have a chance to discuss the issue so we will use the Internet to update the material below.   We will also study different views on parity and the relationship with currency values.


1. “Big Mac Index” Source:

2. Interactive Big Mac EXCEL spreadsheet posted on web site: BMFile2000toJan2017.xls

3. “International Parity Conditions”Source:

4. Parity Theories: Power Point Presentation posted on web site: Parity Theory

5. "Currency Regimes"  Source:

6. "Annual Report on Exchange Arrangements"  Source:

7. U.S. Debt Information"

                  "Who Owns National Debt"National Debt