EconomicsCode 9708
Exchange rates
What this topic asks you to be able to do
- how exchange rates are gauged: the contrast between nominal and real rates; trade-weighted exchange rates
- the way exchange rates are set within fixed and managed systems
- how to tell apart revaluation from devaluation as they apply to a fixed exchange rate
- the shifts in an exchange rate across different exchange rate regimes
- the consequences of shifting exchange rates for the external economy, examined through Marshall-Lerner and J curve analysis