Download e-book for iPad: Exchange Rate Regimes: Fixed, Flexible or Something in by I. Moosa

By I. Moosa

ISBN-10: 0230504426

ISBN-13: 9780230504424

ISBN-10: 1403936722

ISBN-13: 9781403936721

An excellent consultant with all of the fundamentals to appreciate the several sorts of trade expense regimes and the demanding situations they pose to diversified economies.

Show description

Read or Download Exchange Rate Regimes: Fixed, Flexible or Something in Between PDF

Similar money & monetary policy books

Download e-book for kindle: Money, Distribution and Economic Policy: Alternatives to by Eckhard Hein, Achim Truger

Funds, Distribution and fiscal coverage takes factor with the irrelevant remedy of cash, potent call for and distribution matters in sleek mainstream macroeconomics. It provides contributions that are severe of recent orthodoxy and which discover replacement techniques to macroeconomics and monetary coverage research.

The Glitter of Gold: France, Bimetallism, and the Emergence by Marc Flandreau PDF

Hoping on new statistical and archival fabric, this ebook tells the tale of the operation of the overseas financial method of the mid-nineteenth century. It seeks to provide an explanation for how the program used to be capable of climate the effect of the California and Australia gold discoveries.

Extra info for Exchange Rate Regimes: Fixed, Flexible or Something in Between

Example text

The distribution of income is also affected. If the country has a traditional export sector (for example, agriculture or mining), then a very competitive exchange rate will make traditional exports profitable. There are also implications for the asset markets. When domestic returns are below foreign returns, capital flight will occur, leaving a smaller amount of resources available for domestic investment. Moreover, those who indulge in capital flight (for example, those who can fake trade invoices) often do so at the expense of those who do not (perhaps because they cannot).

For various levels of the exchange rate there are corresponding levels of the domestic price, such that a higher level is associated with a higher exchange rate (given that the foreign currency price is constant). With no change in the foreign currency price, the quantity demanded is not affected, which means that changes in domestic currency revenue result only from changes in the domestic currency price. With a constant quantity, a higher level of domestic currency revenue is associated with a higher level of the 36 Exchange Rate Regimes domestic currency price.

7 shows the case when foreign currency pricing is used but the exporter adjusts the domestic currency price (proportionately or otherwise) to offset changes in the exchange rate. 7 The effect of exchange rate changes on the revenue of an exporter (foreign currency pricing with domestic price adjustment) In this case changes in domestic currency revenue result from changes in both the domestic currency price and the quantity sold. What is important to realize from these diagrams is that fluctuations in the exchange rate cause fluctuations in domestic currency revenue irrespective of the pricing strategy used by the exporter.

Download PDF sample

Exchange Rate Regimes: Fixed, Flexible or Something in Between by I. Moosa


by John
4.4

Rated 4.21 of 5 – based on 35 votes