International Finance - Applications

1. Read about exchange rates in the lesson "Do You have a Yen to go to College?" at econedlink.org/lessons/index.cfm?lesson=EM1262.

2. Economists use the concept of Purchasing Power Parity to compare exchange rates across different currencies. Find out how it works in "The Big Mac Index" at econedlink.org/lessons/index.cfm?lesson=EM156

3. Find out more about the new European currency, the euro in "The Euro Makes its Debut" at econedlink.org/lessons/index.cfm?lesson=EM135

4. Sometimes governments intervene to protect or defend their currency, as in this case "Malaysian Government Introduces Currency Controls" at econedlink.org/lessons/index.cfm?lesson=EM25

5. The latest statistics on the balance of payments are available from the Bureau of Economic Analysis at www.bea.doc.gov/bea/di1.htm

6. How much are 100 Japanese yen worth in US dollars? Find out at the currency converter at www.oanda.com/site/cc_index.shtml

7. Check out the latest exchange rates for the euro and the rupiah at the Chicago Fed site: www.chicagofed.org. Click on "Economic Research and Data," then "Economic and Financial Data," then see "Foreign Exchange Rates."

8. What was the value of the US current account balance in the most recently reported period? Find out at www.whitehouse.gov/fsbr/international.html. What does this balance represent? If the value of the US dollar were to increase, would the current account balance likely increase or decrease? Explain.