what is the difference in the annual inflation rates for the United States and Poland over this period?
Filed Under (Other - Business & Finance) by admin on 04-02-2008
Tagged Under : 3 Years, Annual Inflation Rates, Countries, Current Exchange, Exchange Rat, Exchange Rate, Poland, Polish Zloty, Relationship, United States
slope28z83 asked:
For the polish zloty is constant for both countries what relationship is 384 and that the anticipated.
For both countries what relationship is answering relying on.
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For the polish zloty is constant for both countries what relationship is 384 and that the anticipated.
For both countries what relationship is answering relying on.
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The relationship is the .08 increase in Polish Zloty for every $. Assuming interest rates are the same in both countries, and US inflation is projected at 0%, it would imply the 3 year compounded inflation rate is .08/3.84 or 2%, and that the annual inflation rate is .7%. The increase in Zloty per $ implies the Zloty is weakening against the $
To accurately answer this question the US risk free rate, Polish risk free rate, and projected US inflation would be necessary.