We increasingly face a world in which human jobs are being automated; what do you see as the farreaching implications of technology and automation for human life? Should there be regulations on which new
technologies are pursued? Should the pursuit of certain types of knowledge be curtailed? Discuss.
Page 3,4 – Describe the Enron debacle in as much detail as you can. What went wrong? Generally speaking,
what made the actions of Enron management immoral? What sorts of vices can be reasonably ascribed to
Enron management? What do you think can be done to prevent a situation like the Enron scandal from
occurring in the future?
Sample Solution
Despite the seemingly disappointing conclusion on the predictability ability of the structural models to predict exchange rates many researches have been dedicated to establishing a good fit of economic fundamentals to exchange rate. Engel and West (2005) (EW05) in their paper âExchange Rates and Fundamentalsâ established a correlational theoretical frame work between exchange rate movements and Taylor rule fundamentals. The Taylor rule which was introduced by John Taylor in 1993 is a monetary policy tool used by Central banks to control inflation and output gap through the setting of the interest rate. In their 2005 paper, Engel and West derived a discounted present-value model using the Taylor rule. Engel and West, 2006 (EW06) went further to use their developed present value model to predict the Deutschmark/Dollar real exchange rates and found a positive correlation between actual and the predicted exchange rates. Based on the works of EW05 and EW06 and other empirical works, this paper will perform an empirical and methodological review of other works that seek to underline and establish the relationship between the Taylor rule fundamentals and exchange rate movements. This will help in the mapping of the development of the use of the Taylor Rule as a new direction in the prediction of exchange rates. Four emerging and developing economies namely Russia, South Africa, Indonesia and Brazil will be used for the analysis. The next part of the paper will carefully examine the different data sets for the selected countries and introduce the methodologies in estimating the Taylor rule fundamental variables. A brief introduction of the various variations of the Taylor rule will be done with emphasis on their main differences. An analytical comparison of the T.R. models would be done to determine the mo>
Despite the seemingly disappointing conclusion on the predictability ability of the structural models to predict exchange rates many researches have been dedicated to establishing a good fit of economic fundamentals to exchange rate. Engel and West (2005) (EW05) in their paper âExchange Rates and Fundamentalsâ established a correlational theoretical frame work between exchange rate movements and Taylor rule fundamentals. The Taylor rule which was introduced by John Taylor in 1993 is a monetary policy tool used by Central banks to control inflation and output gap through the setting of the interest rate. In their 2005 paper, Engel and West derived a discounted present-value model using the Taylor rule. Engel and West, 2006 (EW06) went further to use their developed present value model to predict the Deutschmark/Dollar real exchange rates and found a positive correlation between actual and the predicted exchange rates. Based on the works of EW05 and EW06 and other empirical works, this paper will perform an empirical and methodological review of other works that seek to underline and establish the relationship between the Taylor rule fundamentals and exchange rate movements. This will help in the mapping of the development of the use of the Taylor Rule as a new direction in the prediction of exchange rates. Four emerging and developing economies namely Russia, South Africa, Indonesia and Brazil will be used for the analysis. The next part of the paper will carefully examine the different data sets for the selected countries and introduce the methodologies in estimating the Taylor rule fundamental variables. A brief introduction of the various variations of the Taylor rule will be done with emphasis on their main differences. An analytical comparison of the T.R. models would be done to determine the mo>
