Economics Department
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Economics Department |
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Exchange rate essays
This week's essays
1) In early 2003, the £ depreciated sharply against the euro. (a) Explain the factors that might have led to such an depreciation 10 marks (b) Analyse the likely impact of such an depreciation on the UK economy 10 marks
Other essays
2) During 1998/99 interest rates in the UK fell steadily. One effect of this was that the value of the pound fell against the US dollar. (a) What are the factors that determine the value of the pound against the US dollar? 10 marks (b) Discuss the arguments for and against the government taking action to prevent the pound falling against the dollar. 10 marks
3) During 2000, exporters protested strongly against the high value of the pound. In spite of that the Bank of England increased interest rates on a number of occasions. (a) Analyse the likely impact of a strong pound on UK exporters 10 marks (b) Discuss why might the government have taken the action it did, highlighting any conflict of policy objectives. 10 marks
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