Should Australia Return to a Fixed Exchange ... / ID: 796870

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ID number:796870

Author: Anonymous author (9)

Evaluation:

Published: 14.09.2004.

Language: English

Level: Secondary school

Literature: n/a

References: Not used

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Extract

Since the inception of a floating currency exchange rate system, the Australian dollar has declined by over 30% and as a result many economist have warranted the return of the fixed exchange rate. But is it really worth it?
To see which system suits Australia best, we need to understand what the difference is between these two methods.
So what is a floating exchange rate system? Do you know...
A free floating exchange rate is one where the value of the currency is determined solely by market demand and supply within the foreign exchange market.…

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Essays

Business and Law

Economics

Should Australia Return to a Fixed Exchange Rate, Rather than a Floating Currency Exchange System?