这是一份nottingham诺丁汉大学ECON2003作业代写的成功案例

Price levels and the exchange rate are related through purchasingpower parity
$$
s_{t}=p_{t}-p_{t}^{} . $$ To simplify the notation, call $$ f_{t} \equiv\left(m_{t}-m_{t}^{}\right)-\phi\left(y_{t}-y_{t}^{*}\right)
$$
the economic fundamentals. Now substitute to get
$$
s_{t}=f_{t}+\lambda\left(\mathrm{E}{t} s{t+1}-s_{t}\right)
$$
and solving for $s_{t}$ gives
$$
s_{t}=\gamma f_{t}+\psi \mathrm{E}{t} s{t+1}
$$
where
$$
\begin{aligned}
\gamma & \equiv 1 /(1+\lambda) \
\psi & \equiv \lambda \gamma=\lambda /(1+\lambda)
\end{aligned}
$$

ECON2003COURSE NOTES ：

Let the Euler equation for a domestic investor that speculates in forward foreign exchange be
$$
F_{t}=\frac{\mathrm{E}{t}\left[u^{\prime}\left(c{t+1}\right)\left(S_{t+1} / P_{t+1}\right)\right]}{\mathrm{E}{t}\left[u^{\prime}\left(c{t}\right) / P_{t+1}\right]}
$$
where $u^{\prime}(c)$ is marginal utility of real consumption $c$ and $P$ is the domestic price level. From the foreign perspective, the Euler equation is
$$
\frac{1}{F_{t}}=\frac{\mathrm{E}{t}\left[u^{\prime}\left(c{t+1}^{} /\left(S_{t+1} P_{t+1}^{}\right)\right]\right.}{\mathrm{E}{t}\left[u^{\prime}\left(c{t}^{}\right) / P_{t+1}^{}\right]}
$$
where $c^{}$ is foreign consumption and $P^{}$ is the foreign price level. Suppose further that both domestic and foreign agents are risk neutral. Show that Siegel’s paradox does not pose a problem now that payoffs are stated in real terms.