Intl Economics - Chapter 12: Exchange Rate Determination

Interest rates and inflation drive a currency’s exchange rate: when combined, both signify a country's relative level of economic health. Currency Exchange rates play a vital role for commercial trade activities. Because of that importance, exchange rates are the most watched, analyzed and governmentally manipulated economic measures. Currency Exchange Rates are also important at the business operations level: as they impact the real return of an investor's portfolio. We will discover some of the major forces behind exchange rate oscillations!

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