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 [...]
In this article we will discuss about the arguments for and against fixed exchange rates. The advocates of a fixed or pegged or stable exchange rates advance arguments to justify this system or this type of exchange rate policy. At the same time, many arguments are advanced to criticize such a policy. Arguments for Fixed Exchange Rates: The main arguments [...]
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 [...]