I tried to go over all the descriptive stuff tonight. All the long run equilibrium fx models. The capital account adjustments. The Dornbusch overshooting model, I literally cant look at this anymore. Economics is horrendous value in terms of material to value.
What’s everyones strategy for this?
I am going to do:
FX transactions (carry Triangular arb)
All the parity relationships
Mundell Flemming Table
The different output theories (NC, C, Endogenous etc)
and then just ignore the rest (except for a brief skim)
Looking at topic tests, Cobb-Douglas and GDP growth calculations are v/important as well.
Seconding abashtavy. Memorize 4-5 growth accounting equations and test drive them a bit. Doing so is actually much more straightforward than keeping track of currencies.
I covered it all in a day…10 hours…terrible. Woke up feeling like I drank Jameson all night. Do the Future/Forward stuff. They make you hit the bid/ask to offset the position, also swaps use a “midpoint” rate with the forward points decided by how you offset. There is a bluebox with that. Somehow they took the worst part of derivatives and made it worse.