SESSION TWO                              

Topic:  Exchange rate systems and parity theories

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 Any attempt to proide material prior to the Resident Session will mean that it is outdated before we have a chance to discuss the issue sowWe will use the Internet to update the material below.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


1."International Parity Theories"

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

3. "Inflation Rates"

4. “Big Mac Index” Source:

5. Big Mac EXCEL spreadsheet posted on web site: Big Mac

6. Class Big Mac Class Big Mac

7. "Currency Regimes" Source:

8. U.S. Debt Information

National Debt

U.S Debt Clock

Day Two Lecture Links