The J-curve effect assignment writing service

The J-curve effect It is often argued that changes in exchange rates are important determinants of trade flows and the so-called J-curve effect describes how changes in exchange rates may affect the current account balance of a country. Your manager is concerned about the number and size of large exchange rate changes in foreign exchange markets recently and wants to know how these changes will affect trade
flows of these countries. Pick 4 countries of your choice that experienced large changes in the exchange rate in the recent past, say the last 10 years, create graphs from on the data to show the changes of the exchange rates and current account, and investigate whether an appreciation or depreciation of these countries’ exchange rates affected current account balances in a way described by the J-curve effect. Is there evidence of such an effect in the data or not? You should also includes the data in the appendix.

Hint: A good starting point for such exchange rate changes is the global financial crisis in 2008 which led to large movements in many exchange rates.

Data Notes:
There are many other open sources of data on the web. For example, the IMF has a query tool for exchange rates (http://www.imf.org/external/np/fin/ert/GUI/Pages/CountryDataBase.aspx) and an extensive database on country-level statistics such as implied PPP rates, GDP growth, inflation, current account statistics, etc.
(e.g. here http://www.imf.org/external/pubs/ft/weo/2014/02/weodata/index.
aspx).
The Fed St. Louis maintains a large collection of useful data which includes, among other things, data on exchange rates and foreign exchange interventions by central banks. http://research.stlouisfed.org/fred2/categories

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