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Teaching Economics

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Floating versus Fixed Exchange Rates

Geoff Riley

14th November 2022

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We have just added a new revision video to the Economics Reference section on the merits and drawbacks of floating versus fixed exchange rates.

Choice of currency system is one of the most important decisions that a government takes when operating macroeconomic policy.

The UK for example operates a free floating currency whereas Denmark fixes their currency (the Krone) against the Euro and the Bahamas fixed against the US dollar.

And here is a Quizlet retrieval activity on exchange rates / currencies that might be useful.

This Quizlet always proves popular as a classroom activity - here are 32 countries each with a differently-named currency - can students match them up?

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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