Friday , April 26 2024
Home / SNB & CHF / Does the Balance of Payments Determine Exchange Rates?

Does the Balance of Payments Determine Exchange Rates?

Summary:
Some economists believe that the balance of payments is what determines currency exchange rates. In fact, exchange rates are always about the purchasing power of some currencies relative to others. Original Article: Does the Balance of Payments Determine Exchange Rates? [embedded content] Tags: Featured,newsletter

Topics:
Frank Shostak considers the following as important: , ,

This could be interesting, too:

Vibhu Vikramaditya writes Navigating the Slippery Slope: How Hoover’s Interventions Paved the Way for the Great Depression

Ryan McMaken writes Frédéric Bastiat Was a Radical Opponent of War and Militarism

Douglas French writes Millennials: In Costco We Trust

Joseph T. Salerno writes What Fed “Independence” Really Means

Some economists believe that the balance of payments is what determines currency exchange rates. In fact, exchange rates are always about the purchasing power of some currencies relative to others.

Original Article: Does the Balance of Payments Determine Exchange Rates?


Tags: ,
Frank Shostak
Frank Shostak is an Associated Scholar of the Mises Institute. His consulting firm, Applied Austrian School Economics, provides in-depth assessments and reports of financial markets and global economies. He received his bachelor's degree from Hebrew University, master's degree from Witwatersrand University and PhD from Rands Afrikaanse University, and has taught at the University of Pretoria and the Graduate Business School at Witwatersrand University.

Leave a Reply

Your email address will not be published. Required fields are marked *