Exchange rates - Economics Help
2017年6月28日 · Understanding exchange rates. Definition of real exchange rates. Factors which influence the exchange rate and the effect of appreciation and depreciation in value of currency.
Understanding exchange rates - Economics Help
2022年3月24日 · A summary for understanding exchange rates. Factors that affect exchange rates and the impact of exchange rates on the economy. Examples, diagrams, evaluation.
Factors which influence the exchange rate - Economics Help
2022年5月28日 · What determines exchange rates? How inflation, interest rates, confidence, balance of payments and growth can influence ER. Understanding the exchange rate with diagrams and examples.
The impact of a falling exchange rate - Economics Help
2019年8月18日 · A look at the economic impact of a fall (devaluation) in the exchange rate on firms, consumers, inflation, balance of payments and economic growth. Examples of falling exchange rates in UK and US.
Fixed Exchange Rates - Economics Help
2015年11月28日 · Definition of a Fixed Exchange Rate: This occurs when the government seeks to keep the value of a currency fixed against another currency. e.g. the value of the Pound Sterling fixed against the Euro at £1 = €1.1. Semi-Fixed Exchange Rate.
Interest Rates and Exchange Rate - Economics Help
2021年4月20日 · Interest Rates and Exchange Rate. 20 April 2021 by Tejvan Pettinger. A look at how interest rates and inflation affect the exchange rate – in short, higher interest rates tend to cause an appreciation in the exchange rate.
Exchange Rate and Economic Growth - Economics Help
2017年9月11日 · But, high-interest rates reduced the rate of economic growth. Today, countries in the Euro, have a permanently fixed exchange rate, leaving them becoming increasingly uncompetitive. This rigidity in foreign exchange is a significant factor in causing lower economic growth in southern Europe.
Purchasing Power Parity (PPP) - Economics Help
2018年11月27日 · The purchasing power parity is determined by dividing a basket of goods in one country, by the cost of basket of goods in another. A simple example of purchasing power parity. Suppose a Big Mac costs £2 in the UK and $4 in the US. The correct exchange rate according to purchasing power parity would by £1 equals $2.
Advantages of fixed exchange rates - Economics Help
2019年3月28日 · A look at the advantages and disadvantages of fixed exchange rates when value of currency is pegged against another. Including - lower inflation, greater stability, more investment.
Currency Speculation and Exchange Rate - Economics Help
2019年10月17日 · Definition and meaning of currency speculation. Why misaligned currencies in fixed exchange rate systems can be target of speculators. e.g. UK in Exchange rate mechanism.