Chapter 6: Exchange Rate Flashcards

1
Q

Ways To Manage

A
  • Direct Intervention
  • Domestic IR
  • Jawboning
  • Print Money
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2
Q

Key Determinants of ER

A
  • Commodity Price
  • Relative IR
  • World EG
  • Speculation
  • Relative Inflation Rate
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3
Q

Effects of Australia’s ER

A
  • Price of X/M
  • Foreign Deb
  • Foreign Investment (equity)
  • External Shock
  • Relative Inflation Rate
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