Notes>International Economics>3.2 Exchange Rates

Definitions   Exchange rate is the value of one currency expressed in terms of another currency. Floating exchange rate is an exchange rate regime where the value of a currency is allowed to be determined solely by the demand for, and supply of, the currency on...

Freely floating exchange rates Exchange rate: the price of one currency expressed in the terms of other currencies. Floating system: the value of the exchange rate is determined by the supply and demand of the currency on the foreign exchange market. Appreciation: an...