Term paper exchange

Financial Innovation volume 5Article number: 5 Cite this article. Metrics details. ARDL bounds test approach for cointegration is applied to test the long-run relation between the dependent and the independent variables. Based on the results of this study, it is recommended that the policymakers of term paper exchange Chinese government should implement vital monetary and fiscal policies to determine the less volatile order math papers productive exchange rate for China to term paper exchange sustainable economic growth for a long time with its trading partners.

Different economists argue that a flexible exchange rate is considered to be an important factor for any economy.

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Moffett et al. Managed floating exchange rate is the rate based on the demand and supply of specific currencies under certain interaction of the government.

term paper exchange

Freely floating rate is the exchange rate that fully relies on the force of demand and supply at an open market, without any government interaction. Nowadays floating and pegged exchange rates are the term paper exchange popular exchange rates.

term paper exchange

The floating exchange rate is adopted by the US, Europe, Japan for international trade and the currencies of these countries depend on how the currency trades term paper exchange foreign exchange markets.

Countries ppaer international trade relation with other countries should maintain the stability of their currencies.

To protect against the currency depreciation countries will choose to peg their currency for their exported goods and services. Saudi Arabia, Qatar, Oman and Jordan with term paper exchange Middle East term paper exchange that export oil to other countries has pegged ezchange country currencies to USD since the US is the largest oil importing country in the world.

term paper exchange

Starting inCNY has been appreciating over the next 3 years since some of its term paper exchange trading exchaneg have forced the country to switch to the managed peg system. However, it was appreciated again in June One of the most important factors affecting exchange rate is the gross domestic product growth rate.


Azid et al. The exchange rate of any country can be affected by its inflation rate.

term paper exchange

Purchasing power parity theory endeavored to find that in different countries having fluctuating exchange rates, equilibrium in exchange will happen term paper exchange buyers in these countries hold similar buying power.

Engel and Rogers study show that if any country has a greater price level of different commodities, the home currency of term paper exchange country will dissertation and thesis difference facing depreciation in exchange rates as compared to exchane countries.

Smith stated that higher inflation rates minimalize the competitiveness of the country in international market with its trading partners. Kulkarni and Ishizaki pointed out term paper exchange the high dissertation protection consentement mariage rate causes a lower value of the home currency. Fisher revealed that nominal interest rates and inflation rate have association with each other.

High interest rate boosts inflation in any country and higher inflation term paper exchange causes depreciation in a host country currency. Drine and RaultHauLartey et al.]