The difference among a floating and managed exchange rate, Macroeconomics

Assignment Help:

Explain the difference among a floating and managed exchange rate.

The key distinction here is that a floating exchange rate is set by market forces, i.e. supply and demand. A managed exchange rate - defined perhaps as an adjustable peg or simply pegged exchange rate regime - will see how the rate is set by central bank policy and upheld by intervention purchasing/selling of the domestic currency.

 


Related Discussions:- The difference among a floating and managed exchange rate

How are the qualitative aspects of development measured, How are the qualit...

How are the qualitative aspects of development measured? Development includes the evolution of more safe, stable, participatory and only societies. This involves capacity deve

Gdp of various components, What are prices indexes designed to measure? Out...

What are prices indexes designed to measure? Outline how they are constructed. When GDP and other income figures are compared across time periods, explain why it is important to ad

IS/LM MODEL, Explain the chain reactions (primary and secondary effects) an...

Explain the chain reactions (primary and secondary effects) and show graphs of the following variables: (i) taxes increases, (ii) government spending increases and (iii)repo ra

Trade and development, TRADE AND DEVELOPMENT: In the earlier Units of ...

TRADE AND DEVELOPMENT: In the earlier Units of this block, you have learnt about the trade policy from historical perspective and the recent shift in policy during nineties. Y

Major tenets of kant''s ethical theory, Please answer the question below re...

Please answer the question below relating it to BUSINESS in today's world. What are the major tenents of the ethical theory of Utilitarianism, and how would this theory be appli

Quality of health care, Explain how changes in the quality of health care w...

Explain how changes in the quality of health care will influence the demand for care.

Relate overnight rate with money supply, Relate overnight rate with money s...

Relate overnight rate with money supply When the overnight interest rate decreases, the money supply increases When the overnight interest rate increases, the money supply d

U.s. department of agriculture, The U.S. Department of Agriculture, nass.us...

The U.S. Department of Agriculture, nass.usda.gov, publishes charts on the prices of farm products. Go to the USDA home page and select Charts and Maps and then Agricultural Prices

Correlation of investment and interest rate, Suppose the demand for loanabl...

Suppose the demand for loanable funds was stable but the supply fluctuated from year to year. what cause fluctuate in supply?

Introduce about the open-economy macroeconomics shortly, Introduce about th...

Introduce about the open-economy macroeconomics shortly. The Open Economy: a. One of the major concerns introduced through open-economy macroeconomics is the exchange rat

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd