Chapter 6: Exchange Rate Flashcards
1
Q
Ways To Manage
A
- Direct Intervention
- Domestic IR
- Jawboning
- Print Money
2
Q
Key Determinants of ER
A
- Commodity Price
- Relative IR
- World EG
- Speculation
- Relative Inflation Rate
3
Q
Effects of Australia’s ER
A
- Price of X/M
- Foreign Deb
- Foreign Investment (equity)
- External Shock
- Relative Inflation Rate