International Economics>> Determination of Exchange Rate
汇率确定
什么是汇率？
汇率本质上是货币的价格，就另一种货币而言。更确切地说，汇率是外汇市场中另一个国家的货币购买和出售一个国家货币的利率。例如，1998年5月27日，引用了以下内容，以印度卢比的价格销售某些外币的销售价格：美元=卢比。41.80;英国£= Rs。68.05;DM = Rs。23.75;f fr = rs。7.15; HK $ = Rs. 5.40; Lira (100) = Rs. 2.35; Yen (100) = Rs. 30.30. These rates imply that foreign exchange dealers will sell these currencies at these quoted rates. Buying rates are lower than the selling rates by the amount of dealer's margin.
How is the foreign exchange rate determined? There is no simple answer to this question. For, the method of exchange rate determination has been changing from time to time. It also depends on whether foreign exchange market is free or controlled and whether the government adopts fixed or flexible exchange rate policy. In this chapter, we will discuss first the determination of exchange rate in a free market. This will be followed by a brief discussion on some classical and neo-classical theories of exchange rate determination. Whether exchange rate should be determined by the market or should it be fixed by the government has been a controversial issue. In practice, most countries have adopted both free and flexible exchange rate policies at some stages of their economic growth. We will, therefore, discuss the fixed vs. flexible exchange rate controversy.
确定自由市场的汇率
The free exchange market refers to a market in which there is no restriction on the foreign exchange dealings. The government does not intervene with the process of exchange rate determination; rather, it helps the exchange rate to be determined by the market forces by allowing free sale and purchase of foreign exchanger Furthermore, foreign exchange market does not refer to a particular place, but to the facilities provided by the bankers, brokers and other specialised institutions which deal in foreign exchange. The foreign exchange market for a currency may be spread over all the countries in which its buyers and sellers are spread.
如上所述，汇率是一项货币不良条款的价格，或者汇率是将一种货币交换为另一种货币的价格。由于与所有其他价格一样，由于交易率是价格，因此市场部队在自由市场中确定了需求和供应条件。对外汇的需求和供应是综合需求和供应。外汇需求来自对外国商品和服务的需求。因此，它是对各种商品的需求的综合。各种服务和广泛的证券。此外，另一种需求来自投机者，货币当局愿意建立其外汇储备以供将来付款。同样，外汇的供应源自各种商品，服务和证券的综合供应。此外，外汇供应还来自投机者，外汇交易商和货币当局试图摆脱其过剩的外汇储备。
To explain the determination of exchange rate in a free market, let us first derive demand and supply curves for foreign exchange. The demand curve for foreign exchange is derived from the demand for foreign goods, services and securities, and shows inverse relationship between exchange rate and demand for foreign exchange as shown by DD1in Fig. 16.1. In fact a lower exchange rate implies lower prices of foreign goods and services and vice versa. As the law of demand states, the lower the exchange rate, the higher the demand for foreign goods and services, given the domestic comparable prices, and hence the greater the demand for foreign exchange.
International Economics Assignment Help - Homework Help
Have you not been able to solve yourinternational economicshomework problems yet? Are you seeking an assignment help online for determination of exchange rate - international economics subject.ExpertsMind.comis right place and trusted name in online tutoring company that offers help with qualified and experienced economists help where you can find solutions for determination of exchange rate assignments and homework. Now determination of exchange rate related homework and assignments problems are easy for you by taking help from professionals and talented economics experts, Get ready to secure high grade in your competitive exams.
在线补习帮助确定汇率 - 国际经济学
ExpertsMind.com为在国际经济学主题涵盖的所有主题提供在线辅导帮助。我们的瞬间经济学experts provide instant tutoring session for assignments and home works.Our economics expert tutors are available for 24*7 hours for help, in university assignments and course preparation.