Topic Videos
Economics of Floating versus Fixed Exchange Rates
- Level:
- AS, A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 14 Nov 2022
This revision video looks at fixed, managed floating and fixed exchange rates and considers some of the advantages / drawbacks of each choice of currency system.
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.
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