The debate concerning the fixed versus flexible exchange rates is not complete unless the arguments that the economists have advanced in support of and against the system of flexible or fluctuating rates of exchange are considered. Arguments for Flexible Exchange Rates: The main arguments in favour of the flexible exchange rates are as below: (i) Simple Mechanism: The system of [...]
In this article we will discuss about the merits and demerits of multiple exchange rates. Immediately after the Second World War, almost 50 countries of the world were having a complex system of multiple exchange rates. The prominent among them were West Germany, Argentina and a number of Latin American countries. By 1950's, the system was completely abandoned because of [...]
Here is an essay on ‘Exchange Rates’ for class 11 and 12. Find paragraphs, long and short essays on ‘Exchange Rates’ especially written for school and college students. Essay # 1. Meaning of Exchange Rate: The rate of exchange is the rate at which the currency of one country is exchanged for the currency of another country. It is the [...]