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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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