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.

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.

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.

2019年7月17日 · A simplified explanation of how inflation can affect the exchange rate. (higher inflation - tends to reduce ER). Also how exchange rate can influence inflation rate. Examples. Evaluation and graphs from UK economy.

2017年9月9日 · Definition of real effective exchange rate - the value of a currency against a basket of other currencies. How to calculate, examples. How real exchange rates can become misaligned

2018年11月27日 · Purchasing Power Parity PPP is a theory which suggests that exchange rates are in equilibrium when they have the same purchasing power in different countries. Purchasing power parity will involve looking at a basket of goods to determine effective living costs.

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.

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.

2016年11月28日 · Under certain circumstances, the government might want to intervene in the foreign exchange markets to influence the level of the exchange rate. Methods to Influence the Exchange Rate. Reserves and Borrowing. If the value of an exchange rate is falling and the government wants to maintain its original value it can use its foreign exchange ...

2015年4月18日 · A fixed exchange rate occurs when a currency is kept at a certain level compared to other currencies. In practice, many of them are semi-fixed exchange rates like the Exchange Rate Mechanism ERM. Benefits of Fixed Exchange Rate 1. Helps to reduce inflation.