Briefly explain what nominal effective exchange rate (NEER) and real effective exchange rate (REER) are. For the specific country assigned, collect quarterly data for the period 1990Q1 to 2013 Q4 or as close to 2013 Q4 as possible. Compute and graph the NEER and REER for the country for this period (NEER and REER against time in quarters). Discuss the trends of the currency, whether it has been depreciating or appreciating in real terms.

Data can be obtained from International Financial Statistics (IFS CD) from the International Monetary Fund (IMF) and Direction of Trade Statistics (DOTS), You are given one country to analyze (to compute NEER and REER). You are also given two trading partners. Assume in your computation that these are the only countries it trades with.
home country: Finland, trading partners: Norway and UK. Introduction: Brief explanation/ discussion of what you are trying to analyze. (2 marks)
Analysis & Discussion: A clear explanation of methods and accuracy of analysis, explanation of the findings, use of clear and well labelled graphs (4 marks)
Conclusion: summary of key findings (1 mark)
References: All sources of information should be cited and referenced properly. (1 mark)
Report organization: Clear, well organized paper, with graphs well labeled. (2 marks)