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Describe the four long-term and two short-term determinants of exchange rates. Note that you need to...

Describe the four long-term and two short-term determinants of exchange rates. Note that you need to do more than simply list the determinants. You need to explain how and why they impact on exchange rates and give examples.

Solutions

Expert Solution

1. Inflation.

2. Interest rates.

3. Government debt.

4.Government intervention.

5. Balance of Payment.

6. Speculation.

7. Relative strength of other currencies.

Rahul Sunny answered 2 years ago
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