Discuss three relationships that describe the behaviour of exchange rate (CIP, PPP, IFE).

Students are required to address three parts in the main body of this essay and content details are as blow:

1. Summarise the history of the exchange rate regime of a particular country;

2. Discuss three relationships that describe the behaviour of exchange rate (CIP, PPP, IFE);

3. Estimate the PPP between a particular country and the US. (Students need to collect monthly data for not less than 5 years to complete this part of the essay).