Economics class: Euro hit by bets ECB monetary policy will diverge from major peers

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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

Economics class: Euro hit by bets ECB monetary policy will diverge from major peers
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