Fixed / managed exchange rate systems

IB Economics: Fixed / managed exchange rate systems

This lesson looks at a comparison of fixed and floating exchange rate systems. What are the differences between a floating exchange rate system and a fixed / managed rate system?Lesson time: 70 minutesLesson objectives:Describe a fixed exchange rate system involving commitment to a single fixed rate.Distinguish between a devaluation of a currency and a revaluation of a currency.


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