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Foreign Exchange Market

C/F/634. Models of exchange rate determination

WORDS:
3350
DATE:
2010
PRICE:
39.99 GBP

The paper looks at the theory and history of international trade exploring the models that claim to predict exchange rate fluctuations, i.e. the Mundell-Fleming model, the monetary model, and the Krugman model. Conclusions are made about the effectiveness of the models in explaning the variables that can determine the exchange rate.

 

KEYWORDS: Exchange rates, Mundell-Fleming, Monetary model, Krugman,

 
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