Problem
1. If you are working in a developing country and only have access to local data, how would you estimate a "rough and ready" version of a real effective exchange rate time series for this country?
2. If the gold standard were again operating, why would you expect the "gold points" to be wider for the sterling/yen exchange rate than for the sterling/euro rate? If silver were substituted for gold in this fixed exchange rate regime, what would happen to the band within which exchange rates could move? Why?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.