Economics class: Euro hit by bets ECB monetary policy will diverge from major peers
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.
Specification:
Exchange rates, monetary policy
Click to read the article below and then answer the questions:
Euro hit by bets ECB monetary policy will diverge from major peers
With reference to the chart, explain whether the euro appreciated or depreciated against the US dollar from Q1 — Q4 2021
Define hot money
Explain why speculators are likely to swap euro for sterling or USD
Using exchange rate diagrams, analyse the effect of these currency trades on the respective exchange rates
Gavin Clarke, Emmanuel College
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