Exchange rate

Exchange rate

1. Fixed exchange rate

   • conventional
     • margin 1%
   • currency board
     • law
   • no separate legal tender
     • Adoption polcy (money) abroad
   • intermediate
     • Bands
   • trilema (hard)
     • independent monetary policy
     • free movemen K
     • Fixed
   • Soft
     • internation reservs

2. Floting exchange rate

   • inflation
   • market
     • no intervention
       • Euroszone
     • intervention
       • volatility

3. Emerging countries

   • capital flows
   • Fixed
     • intervintion
       • competitivness
     • easy

4. BoP

   • current account
     • Deficit
       • S<C+ Not competititvness
       • financed by financial acount
         • capital flow
           • low risk premium
           • increase competitivness
           • Growth
     • surplus
       • S>C
       • competitivness