Floating exchange rates
Changes in demand and supply for a currency - factors including:foreign demand for exports, domestic demand for imports, inward/outward foreign direct investment, inward/outward portfolio investment, remittances, speculation, relative inflation rates, relative interest rates, relative growth rates, central bank intervention
Consequences of changes in the exchange rate on economic indicators, such as: the inflation rate, economic growth, unemployment, the current account balance, living standards
Fixed exchange rate
Managed exchange rates
Link to packet
Link to packet HL SL A brand new real world example of potential monetary integration: Brazil and Argentina to start preparations for a common currency Revision Village exam question Paper 2 g can be found here: www.revisionvillage.com/ib-economics/hl/past-papers/
Arguments for trade protection (advantages), including:
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