What does this tell you about the real exchange rates for Russia?

Economics 102

The war with Ukraine and the sanctions imposed on Russia have likely economic
consequences for Russia. One potential channel is through the exchange rate and the
balance of payments. In this assignment, we want you to collect and analyze data
relating to these effects, drawing on the models you have learned in this class. In
addition to FRED, you can look at www.tradingeconomics.com for data. Make clear
with a footnote or resource list at the end where you got your data from.

1. Document the development of the nominal exchange rate for the Russian
Ruble versus the Euro, the USD and the Canadian Dollar over the last year. Use
a graph, and make clear which exchange rate convention you use. How much
has the Russian Ruble lost in value since February 1, 2022?
(plz calculate the data, and make the graph using FRED)
2. Document the development of inflation for the United States, the Eurozone,
Canada and Russia. What does this tell you about the real exchange rates for
Russia?
(plz calculate the data)
3. What are the implications of recent exchange rate developments for the
current account and the capital account of Russia? In this context, what is
capital flight?
4. Drawing on the following article: https://www.politico.eu/article/rubles-for-
gas-russia-vladimir-putin-trolls-the-west-energy-economy/, describe briefly
how payment in Russian Rubles for energy might affect the foreign exchange
market for Russian Rubles.

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