뒤로Macroeconomics: Exchange Rate Concepts
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An exchange rate is the price of one country's currency in terms of another country's currency.
Exchange rates are determined by supply and demand for currencies in the foreign exchange market.
A fixed exchange rate system pegs a currency's value to another currency or a basket of currencies, maintained by government intervention.
A floating exchange rate system allows currency values to fluctuate freely based on market forces without direct government control.
Currency depreciation makes exports cheaper and more competitive internationally, potentially increasing export volume.
Currency appreciation means a currency increases in value relative to another, making imports cheaper and exports more expensive.
Central banks may intervene in foreign exchange markets to stabilize or influence their currency's exchange rate.
The nominal exchange rate is the current price of one currency in terms of another, while the real exchange rate adjusts for price level differences between countries.
The real exchange rate is calculated as \(E \times \frac{P^*}{P}\), where E is the nominal rate, P^* is foreign price level, and P is domestic price level.
A currency peg is when a country fixes its currency's value to another currency to provide exchange rate stability.
A currency band allows a currency to fluctuate within a set range, while a crawling peg adjusts the peg gradually over time.
Higher domestic interest rates attract foreign capital, increasing demand for the currency and causing appreciation.
Higher inflation in a country tends to depreciate its currency as purchasing power declines relative to other currencies.
A deficit in the balance of payments can lead to currency depreciation due to higher supply of the currency in foreign exchange markets.
The spot exchange rate is the current exchange rate for immediate delivery, while the forward rate is agreed upon now for delivery at a future date.
Currency speculation involves buying or selling currencies to profit from expected changes in exchange rates.
A trade surplus increases demand for the country's currency, often leading to currency appreciation.
PPP theory states that exchange rates adjust so that identical goods cost the same in different countries when priced in a common currency.
Exchange rate volatility is caused by changes in economic indicators, political events, market speculation, and central bank policies.
Countries intervene to stabilize their currency, control inflation, support exports, or maintain economic competitiveness.