The Real Exchange Rate — Big Mac to Balassa-Samuelson
Build the Law of One Price, Purchasing Power Parity, the Real Exchange Rate, and the Balassa-Samuelson hypothesis from scratch on Costarian data.
About this simulation
Step into the shoes of the UK Chief Statistician at the ONS. Classify international transactions into the correct BoP sub-accounts, interpret the UK trade deficit, judge the sustainability of portfolio-heavy financing, forecast the J-curve after a sterling depreciation, and deliver a policy recommendation to the Chancellor.
Teaches BoP structure, the double-entry identity, financing-composition risk, Marshall-Lerner, and expenditure-switching vs expenditure-reducing policies.
Who it is for
An advanced simulation for participants used to working with the main frameworks and trade-offs of the subject, designed for executive education and experienced professionals.
How a session runs
- The instructor creates a session from the Eureka dashboard and invites the participants.
- Participants play 5 rounds. In each one they submit their decisions and the simulation calculates the results.
- The simulation can be run in English, Español.
- The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.