Assignments
1. find a pricing anomaly, ask a few people concerned why they think it exists, how they feel about it, and come back and report why you believe it exists. What prevents retrading that will eliminate single pricing.
2. find out whether a particular country’s currency is overvalued or undervalued. Data you should consider: Internal and international prices of specific goods, the countries general price level, relative price differentials in this country, flows of exports, imports, services and capital.
3. What monetary, fiscal, trade or exchange rate policies should the government pursue to promote economic growth. What effects are likely to occur with regard to purchasing power parity, and why is this important?
Assessment of these assignments will not assume a correct answer, but rather will require students to think about their need for measurements, to consider the reliability of their measures, to determine whether a particular measure is large or small in terms of a particular context (or to consider who one might figure this out), finally to explain the connections they believe exist between one piece of data and the next.