Fixed and Floating Exchange Rates

http://www.youtube.com/v/7ktnrk2pS-Q?fs=1

Fixed and Floating Exchange Rates – A look at the difference between fixed and floating exchange rates, specifically looking at how fixed exchange rate regimes are managed
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Fixed and Floating Exchange Rates

Fixed and Floating Exchange Rates - A look at the difference between fixed and floating exchange rates, specifically looking at how fixed exchange rate regimes are managed

11 thoughts on “Fixed and Floating Exchange Rates

  1. Joe Watkins

    if a country has a fixed exchange rate, what can they do with the exchange rate to decrease inflation?

  2. Pearlyn Tan

    Hi Sir. When the government uses foreign currency to buy domestic currency in the market, is the demand increasing or supply decreasing?

  3. Zarki Ali

    If you increase the demand for the pound through using foreign currency reserves surely the qty of the pound on the market should decrease in order to achieve an appreciation. Yet the qty of the pound increased in the video? Can you please explain why a increase in qty resulted in a appreciation of the pound?

  4. LaSandra Buffie

    I really appreciate your video first of all. Quick question though: when the central bank sells the pound on the market you call it an increase in supply, but when it buys the pound it is an increase in demand. Why aren't the two operations just polar opposites of one another? As in, why can't selling the pound be considered a decrease in demand or buying the pound be considered a decrease in supply?

  5. Goku

    Just generally, if it were a 'evaluate' or 'assess' question for govt policy implementation and it wasnt centred around ER, then is it wise to still mention ER stuff somewhere without going on a tangent?

  6. aman singh

    Hi Sir. In the beginning of the video, you said you made a video for specifically floating exchange rates, however I have been looking through all your videos and I cant seem to find that video. Would you mind giving me the link to that video?

    Thanks for all the time and effort spent making these fantastic videos

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