I think the the last advantage of floating exchange rate is wrong. There is likely to be more speculative attacks in floating exchange rates as the exchange rate fluctuates. It will cause cause more speculations. However in fixed exchange rates as the rate is fixed there will be no likely speculation as the chance of the currency appreciating or depriciating is very low unless the govt decides so.
nah in a fixed exchange rate u have to remember it can still lose value its just the government will intervene to try and restore its value. It means that a currency is more likely to be either over valued or undervalued, because the government is fighting market forces; hence more speculative attacks
@@georgetracey926 I would say both are equally correct. Floating exchange rate systems are also prone to speculative attacks and whilst fixed exchange rate systems are maintained by the government, they may be unsustainable to maintain predominantly due to the expenses associated with large foreign currency reserves
@@georgetracey926 yes in a fixed system for fx traders theres is more certainty regarding exchange rate fluctuations and as a result of that buying up a currency when it is undevalud or below the fixed level and selling the currency when it is overvalued or above the fixed level. theres not that degree of certainty in a floating echange rate system as even if a currency depreciates fx traders would have no assurance or sense of certainty due to a lack of intervention within the exchange rate system
Would a reduced value of a currency, increasing inflation would also increase cost push factors for say the UK, more so than demand pull? P.S great job with the videos Mr Dal.
Can u pls make a video of "A fixed exchange rate regime is more Desirable than a floating exchange rate system for international businesses." Thx in advance
Hello! Your videos are very very helpful, please can you further explain the point no. 4 under floating exchange rate on 'partial automatic correction for a trade deficit'?
Can you evaluate the effects of a trade deficit by saying although a currency will depreciate in value, if the currency has a fixed exchange rate, the government will use its reserves to correct the change (therefore making it not a problem)?
can someone plz tell me where is the video where a floating exchange rate can fix trade deficit? i cannot find it and i need it immediately as it's for my exams
JoyNuL3 I would highly recommend making a video on labour markets too, as its a question that tends to come up every year in econ 3 and with your thorough explanations and diagrams, it would be great for all us students.
Your handwriting is perfectly legible. Especially compared to some of my teachers who seem to use an ancient language instead of English when they write.
thanks for your video, but I have a more basic question. why there is a fluctuation in the graph of fluctuating exchange rate but not in a fixed exchange rate. Is this because the fixed exchange rate will not be affected by the market force?
oi the fuck was the future shit how am i supposed to trade with my future exchange rate and come back in the present time to appreciate a future currency
Thank you for such a clear explanation I have been attempting to get my head around this for weeks
.Just saved my Alevel thank you.
you have saved my A-Levels, thank you so much!!
What did you end up getting?
I have my A2 macro tmrw
very useful information. I had a whole essay assignment on this and it was a breeze after this video
Please share your essay with me please
You the man and thank you so much keep doing your thing you are saving lives. God bless!!!!!
O J ok
I
real G! gonna pass this A level cause of you
Econ makes much more sense now :P thank you!
❤
Wow. In one take. Nice man!
Thank you btw!
So helpful. Thank you so much
Another time, you made my day :)
you are the best
If exchange rates are floating, aren't they at more risk of speculation if they are not stabilised by government currency supplies
Thanks Man u helped alot.
I think the the last advantage of floating exchange rate is wrong. There is likely to be more speculative attacks in floating exchange rates as the exchange rate fluctuates. It will cause cause more speculations. However in fixed exchange rates as the rate is fixed there will be no likely speculation as the chance of the currency appreciating or depriciating is very low unless the govt decides so.
nah in a fixed exchange rate u have to remember it can still lose value its just the government will intervene to try and restore its value. It means that a currency is more likely to be either over valued or undervalued, because the government is fighting market forces; hence more speculative attacks
@@georgetracey926 I would say both are equally correct. Floating exchange rate systems are also prone to speculative attacks and whilst fixed exchange rate systems are maintained by the government, they may be unsustainable to maintain predominantly due to the expenses associated with large foreign currency reserves
@@georgetracey926 yes in a fixed system for fx traders theres is more certainty regarding exchange rate fluctuations and as a result of that buying up a currency when it is undevalud or below the fixed level and selling the currency when it is overvalued or above the fixed level. theres not that degree of certainty in a floating echange rate system as even if a currency depreciates fx traders would have no assurance or sense of certainty due to a lack of intervention within the exchange rate system
hello, thank you for the video. can you talk about how exchange rates impact capital flow?
Would a reduced value of a currency, increasing inflation would also increase cost push factors for say the UK, more so than demand pull? P.S great job with the videos Mr Dal.
+Durthpreet Syan Lovely evaluation, yes absolutely. Great that your watching these, keeping spreading the word
+EconplusDal hehe thanks ☺️
Hi I don’t really understand what speculative attacks are, could you briefly explain it to me, cheers
Can u pls make a video of "A fixed exchange rate regime is more
Desirable than a floating exchange rate system for international businesses." Thx in advance
Hello! Your videos are very very helpful, please can you further explain the point no. 4 under floating exchange rate on 'partial automatic correction for a trade deficit'?
I believe it is hinting at the Marshall leaner condition and the J curve
free potts
Am I leaving revision too late?
send prayers for paper 2 pls
I LOVE U
Can you evaluate the effects of a trade deficit by saying although a currency will depreciate in value, if the currency has a fixed exchange rate, the government will use its reserves to correct the change (therefore making it not a problem)?
if the exchange rate is fixed, then there will not be a depreciation??
can someone plz tell me where is the video where a floating exchange rate can fix trade deficit? i cannot find it and i need it immediately as it's for my exams
ruclips.net/video/WgpPDGeEblg/видео.html
hello! do you have a video on managed float exchange rate system?
in terms of the fixed exchange rate, the exchange rate will not depreciate or appreciate drastically amongst other countries, right?
fucking brilliant video
Could you do a video on labour markets for Aqa A2
JoyNuL3 I would highly recommend making a video on labour markets too, as its a question that tends to come up every year in econ 3 and with your thorough explanations and diagrams, it would be great for all us students.
Very good video but could you pls try to write more legibly? I had huge difficulties to make out some words. (Im not a native english speaker)
No worries, but I feel the writing here is quite easy to follow...
Your handwriting is perfectly legible. Especially compared to some of my teachers who seem to use an ancient language instead of English when they write.
then you just cant read english mate
i love u so much
could you recommend manged exchange rates as the best option then
+Tamanna Ali Yes
thanks for your video, but I have a more basic question. why there is a fluctuation in the graph of fluctuating exchange rate but not in a fixed exchange rate. Is this because the fixed exchange rate will not be affected by the market force?
Yes
could u say that volatility may deter fdi?
Sauban Asghar 100% yes
oi the fuck was the future shit how am i supposed to trade with my future exchange rate and come back in the present time to appreciate a future currency
i dont get it either
need to eleaborate more
Free potts
Is he an Indian?????
nah he's nigerian
@@Ved_Desainah he’s my dad
Bruh...
youre so beautiful
Dal have my baby
I will have it with u instead