Economics of money and Banking

1. On pg 27 where AE stands for advanced economies and EME for emerging market economies, compare the international reserves of your selected country (“your country”) to the relevant average. Show the comparison in a graph covering a few recent years and discuss, using also the text from the BIS. 2. Go to page 26, calculate the real short rate (policy rate if possible) for your country and compare to the rates in the US and the Eurozone. Make another graph and discuss. 3. The first graph on p 2 in chapter 1 of the BIS report compares forecasts to outcomes for real growth in different regions. Try to find a forecast for economic growth for your country for 2017 (that forecast should date from the fall of 2016; you could try the October 2016 IMF Economic Outlook). Make a graph showing whether the revision between forecast and realization for y our country was similar to the BIS result for the region and comment on the region and on your country. 4. Work with the first and third graph on page 6 of the BIS report. Copy a few data points and add results for your country if it is an EME or for Malaysia or your home country if it is not. Produce two more graphs and discuss the exchange rate of your country with respect to the dollar and the data point for 2017 for the depreciation and for the Current Account. Discuss your findings. 5. Finally, write a few paragraphs about developments in your country (the country with the rank equal to the final two digits of your student ID) in 2017, summarizing the interesting findings from 1- 4.    

Sample Solution