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

Multipliers, what is difference b/w dynamic and static multiplier

what is difference b/w dynamic and static multiplier

What is investment demand, Q. What is Investment demand? Investment de...

Q. What is Investment demand? Investment demand  Investment I(r) is assumed to be negatively related to the real interest rate r Total dema

Consumers become better educated about the products, How can consumers beco...

How can consumers become better educated about the products they are considering for purchase? To what extent do you personally go to acquire the best information available?

find the nash equilibria for all possible parameter, Two animals are fight...

Two animals are fighting over a prey. The prey is worth v to each animal. The cost of fighting is c1 for the first animal (player 1) and c2 for the second animal (player 2). If the

Find out the expected return on capital, Butthole Industries is buying out ...

Butthole Industries is buying out Avengers, Inc.  Butthole and Avengers both have market capitalizations equal to their fair value or the present value of their net cash flows.  Bu

Effect of a tax on ice cream, Show the market for cigarettes paying particu...

Show the market for cigarettes paying particular attention to the price elasticity of demand and supply. What would happen to the total expenditure on cigarettes if there was a tax

Firms could produce vista, Would it be more efficient if more firms could p...

Would it be more efficient if more firms could produce Vista? Would Microsoft have spent the money to develop Vista if it didn't hold a patent--that is, if once it developed Vista,

Raising chickens requires several types of feed, Raising chickens requires ...

Raising chickens requires several types of feed, such as corn and soy meal. Consider a farm in the former Soviet Union. Try to describe how decisions on the number of chickens to b

Simple regression analysis uncover the ceteris paribus, Let kids denote the...

Let kids denote the number of children ever born to a woman, and let educ denote years of education for the woman. A simple model relating fertility to years of education is kids =

Compare money with wealth and income, Compare Money with wealth and income ...

Compare Money with wealth and income Money isn't the same as wealth. An individual may be very wealthy however have no money (for instance by owning stocks and real estate). An

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