1 econ 335 summer 2019, california state universit

1. 1
ECON 335 Summer 2019, California State University -
Fullerton
Prof. Guannu
Semester Project
***Final draft due: June 24, 2019***
Instructions1
Download the monthly nominal exchange rates (i.e., “monthly,
not seasonally adjusted”) between two
country-pairs below from the Federal Reserve Bank of St. Louis
FRED database -
https://fred.stlouisfed.org/categories/95.
Mexico and the U.S. Germany and the U.S. Sweden and the
U.S. China and the U.S.
Canada and the U.S. U.K. and the U.S. Denmark and the U.S.
Thailand and the U.S.

2. Optional: Students can select additional country-pairs
exchanges (e.g., South Africa and the U.S.) not
listed above. However, make sure that your preference(s) is
listed on FRED’s monthly exchange rate site.
Download data from 1980 to the present. Be sure that you click
the “Edit Graph” button and be sure that
the frequency is “monthly”. Create scatterplots of your two
selected exchange rates (or review the
displayed scatterplot upon downloading data from FRED).
Question#1
generally appreciate (e.g., yen) against the
dollar. During which periods(s) did your exchange rates
generally depreciate against the dollar?
discussed in Econ 335 and from your
literature review/research.
Instructions2
Go to: http://databank.worldbank.org/data/source/world-
development-indicators
In the upper left, click “Layout”.

3. Change “Time” dropdown listing to “Row”.
Change “Series” dropdown listing to “Column”
Change “Country” dropdown listing to “Row”
Select “Apply Changes”
Click the “Variables” tab
Under “COUNTRY,” select your same two countries from
instructions 1.
Under “SERIES,” select the following:
1. Real effective exchange rate index (2010=100)
2. Exports of goods and services (constant 2010 US$)
3. Imports of goods and services (constant 2010 US$)
Under “TIME,” choose 1980 to the present.
Select “Apply Changes”
In the upper right, click “DOWNLOAD OPTIONS” and then
“ADVANCED OPTIONS”. Choose
“Excel” and set the Excel format to “.xlsx” and then make sure
that “Data format” is set to “Table.” Set
“Variable format” to “Names only.” Set “NA preference” to
“Blank” and “Metadata” to “No.” Then

4. download and save your data.
https://fred.stlouisfed.org/categories/95
2
Real Effective Exchange Rate
The real effective exchange rate is defined as the value of a
country’s currency against a weighted average
of several other foreign currencies divided by a price deflator or
index of costs. For example, the real
effective exchange rate is the value of Country A’s currency
relative to the weighted average of Country
B, C, and D’s currencies.
The weighted average reflects the degree to which Country A
trades (i.e., exports, imports) with its main
trading partners – Country B, C, and D. An increase in real
effective exchange rate implies that exports
become more expensive and imports become cheaper; therefore,
an increase indicates a loss in trade
competitiveness.

5. Question#2
In your MS Excel spreadsheet, create a variable that calculates
net exports for your two countries (i.e.,
exports – imports).
1. What has been the long-term trend in the real effective
exchange rate index of your countries’
respective currencies? What effect should changes in the index
during this period have had on your
countries’ net exports? Explain. Be sure your response
references academic journal articles (citing
our course textbook is permitted) and other credible sources.
2. What has been the trend in the real effective exchange rate
index for your countries’ respective
currencies over the last five years? What effect should changes
in the index over this period have had
on your countries’ net exports? Explain. Be sure your response
references academic journal articles
(citing our course textbook is permitted) and other credible
sources.
3. What has been the trend in the real effective exchange rate
index in 2016 or 2017? What effect should
changes in the index during 2016 or 2017 have had on your
countries’ net exports? Explain. Be sure

6. your response references academic journal articles (citing our
course textbook is permitted) and other
credible sources.
4. Write a 5-page paper on your project. When completed,
upload your paper to Titanium.
Part 1 Japan(one page )
https://youtu.be/jbwyveX_iLM
http://afe.easia.columbia.edu/at/tokugawa/tj01.html
part 2 WWI and Interwar Period, Part 1(one page )
https://youtu.be/3gR4wKShs6w
http://www.pbs.org/opb/historydetectives/video/1981803098/
part 3 WWI and the Interwar Period, Part 2 (one page)
https://moodle-2019-
2020.fullerton.edu/mod/page/view.php?id=122368&inpopup=1
THREE-page for ALL of that week’s lectures.
o This sometimes confuses people. The point is NOT to include
every detail but rather to demonstrate to me that you have
watched the lectures and understand the connections between
them. This means making an honest effort to at least mention
each of the main components of the weeks’ contents (so that I

7. know you have, for example, watched an assigned film).
o The best way to do this is to pick a common theme or thread
(eg trade, imperialism, war, empire) that you see throughout the
lectures and then choose evidence (bits) of the lectures that
demonstrate that theme. For example, you might discuss
imperialism and global trade as connecting several lectures and
then tell me how you see that connection playing out.
o “Lectures” includes film clips/videos that are encompass what
would be a class session in a face-to-face class.
• 12-point, Times New Roman, Double Spaced • NO large
headers or footers. • Spell checked, grammar checked.