The Balance of Payments and the Exchange Rate
This note begins by examining the structure and significance of a country's balance of payments. It goes on to examine the concept of exchange rates and similar mechanisms, how foreign exchange markets work, the theory of fixed interest rates and the main exchange rate regimes. It concludes with a study of the main factors determining exchange rates in the short, medium and long term.
Collection: IESE (España)
Ref: ASEN-207-E
Format: PDF
Number of pages: 18
Publication Date: Mar 1, 1998
Language: English, Spanish
Description
This note begins by examining the structure and significance of a country's balance of payments. It goes on to examine the concept of exchange rates and similar mechanisms, how foreign exchange markets work, the theory of fixed interest rates and the main exchange rate regimes. It concludes with a study of the main factors determining exchange rates in the short, medium and long term.
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