b$)$ Suppose that SFF forecasts are accurate for the next year $($same as in part a$),$ however they are less reliable for longer horizons. Instead, you use a na$$ve random walk model to forecast inflation beyond one year $($year $2$ to year $5).$ Note that inflation follows a random walk, not the consumer price index! Based on the purchasing power parity $($PPP$)$ relation, what would be CNY$/$EUR exchange rate estimate over five years, if the current spot rate is $7\mathrm{.}6381?$ Compare your results to the forecasts obtained in part a$).$

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