The Determinants of Exchange Rates in a Floating Exchange Rate System

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  • Опубликовано: 19 июн 2024
  • To understand how a country's currency might appreciate or depreciate, you must understand the variable that can affect demand or supply for the currency on the forex market. This lesson will introduce a useful acronym (TIPSY) for remembering the determinants of exchange rates, and evaluate the advantages and disadvantages of floating exchange rate systems.
    Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! econclassroom.com/?page_id=5870

Комментарии • 43

  • @findsumrun
    @findsumrun 3 месяца назад

    The best, most detailed and clear explanation of interest rates and relative interest rates - thank you sir!

  • @lexparsimoniae2107
    @lexparsimoniae2107 7 лет назад +1

    This is a succinct and perfect summary of the subject. Very well explained. Thank you!

  • @Drew-uz7kc
    @Drew-uz7kc 7 лет назад +4

    So great! Thank you so much for your clear and focused explanation!
    Gonna rock my test tomorrow

  • @morfeen
    @morfeen Год назад

    Such a hidden gem this channel!

  • @awaishussain6574
    @awaishussain6574 2 года назад +1

    Very clearly explained. Excellent!

  • @saharrrrrrr
    @saharrrrrrr 7 лет назад

    helped me A LOT, thank you SO much

  • @mayapotato8497
    @mayapotato8497 2 месяца назад

    For the determinants there are a couple missing, at least from my ib economics study guide that the school provided:
    1.Worker Remittances
    2.Central Bank Intervention
    BUt thank you for the acronym and the video, it was very useful

    • @markmohammed1405
      @markmohammed1405 2 месяца назад

      trying to be a smart ass lol

    • @mayapotato8497
      @mayapotato8497 Месяц назад

      @@markmohammed1405 not really, I’m tryna tell him that he missed some important ones that I needed an explanation for

  • @mariakdebom2941
    @mariakdebom2941 3 года назад +1

    Wonderful explanation......very short and to the point.👍

  • @joanasiimwe2224
    @joanasiimwe2224 11 месяцев назад

    Thank you from Uganda

  • @jamessong6715
    @jamessong6715 2 года назад

    Thank you Mr. Jake Jacobsen!

  • @mahmoodabdulla7161
    @mahmoodabdulla7161 3 года назад

    i cant say how thankful i am for you and how amazing you are I hope you find happiness and ever lasting love in your life I love you and thank you once again

  • @richardnowel4838
    @richardnowel4838 3 года назад +2

    Well explained. being a part of the trade market has really helped me out in so many ways.

    • @andrewclifford7902
      @andrewclifford7902 3 года назад

      Sir james I need a guide
      Can you assist me or connect me to anyone who can?

    • @richardnowel4838
      @richardnowel4838 3 года назад

      I can recommend someone more experienced in this to you.

    • @andrewclifford7902
      @andrewclifford7902 3 года назад

      @@richardnowel4838 I really do appreciate it sir.

    • @richardnowel4838
      @richardnowel4838 3 года назад

      @@andrewclifford7902 anorldchris6(a)gmailcom

    • @richardnowel4838
      @richardnowel4838 3 года назад

      That's my brokers email address, you can contact through email.

  • @56dragonfly
    @56dragonfly 6 лет назад

    great video! thank you

  • @gate1818
    @gate1818 8 лет назад +4

    superb explaination

  • @lost_soulon_earth
    @lost_soulon_earth 7 лет назад

    very well explained

  • @rashmitharushi7057
    @rashmitharushi7057 2 года назад

    Well explained & thank you 🎁

  • @seesyd1519
    @seesyd1519 3 года назад

    The best way to win in fx market is to inderstand it..very useful videos.watched them all..

  • @anju7965
    @anju7965 4 года назад

    Good morning sir,this vedio is very helpful thank you sir

  • @keshaviranjantiwari7674
    @keshaviranjantiwari7674 4 года назад

    Thanks a lot

  • @jaystanphilipo9409
    @jaystanphilipo9409 5 лет назад

    Very helpful

  • @hugohu9978
    @hugohu9978 4 года назад

    This saves me !

  • @danielthomas6223
    @danielthomas6223 4 года назад

    Self isolation makes this very helpful

  • @andrewjason3756
    @andrewjason3756 6 лет назад

    Can anyone tell me the effects on fixed exchange rate as a result of rising interest rates.
    i assume it this way - A rise in interest rate causes hot money inflows, as a result of this currency value appreciates. Therefore exports becomes expensive to foreigner's and imports become cheaper.
    As a result of this export competitiveness fall as as the countries is using a fixed exchange rate, it ends up paying more for it's import's.
    Is this all or can i add some more to it.

    • @fasihz
      @fasihz 6 лет назад +1

      A fixed exchanged rate is pegged by definition, hence it won't change due to rising interest rates if the government doesn't want it to.

  • @garrusoanonimo2292
    @garrusoanonimo2292 7 лет назад +1

    Intro song?

  • @grgn7786
    @grgn7786 2 года назад

    I don't get it. If a country has high interest rates that most probably means that their central bank tries to fight the inflation. If high interest rates mean that the currency appreciates and high inflation means that the currency depreciates, how do we define what happens to their currency? Do we compare then the inflation rate and the interest rate and calculate the real interest rate? Can somebody please give an answer?

  • @sameera6972
    @sameera6972 Год назад

    ♥️♥️❤️

  • @coby1kenobii
    @coby1kenobii 3 года назад

    tipsy

  • @tdofeldt5742
    @tdofeldt5742 2 года назад

    8:10 then how do you explain Black Wednesday in 1992 where UK did have an overvalued fixed exchange rate which cost them billions due to market speculators i.e George soros ?