Slide 1© 2010 Pearson Addison-Wesley Slide 2 Slide 3 Currencies and Exchange Rates To buy goods and services produced in another country we need money of that country. Foreign…

Slide 1Econ 141 Fall 2013 Slide Set 3 Monetary approach to the exchange rate: Purchasing Power Parity and the Real Exchange Rate start Slide 2 The Monetary Approach: Exchange…

Slide 1© 2003 Prentice Hall Business PublishingMacroeconomics, 3/eOlivier Blanchard Prepared by: Fernando Quijano and Yvonn Quijano 20 C H A P T E R Output, the Interest…

1. Balance of Payments and ForeignExchangeInternational BusinessLecture 2b 2. Factors of International Business• Production of Goods and Services• Routes, Roads and Transportation…

* Ch. 14: Money, Interest Rates, and Exchange Rates * The Outline We learned that exchange rates depend on interest rates on the deposits of currencies and the expected future…

Crises and Responses CHAPTER 17 Introduction Objective indicators to understand the likelihood of many (but not all) crises Possibility of balance of payments crises under…

Slide 1 Exchange rates Currencies are bought and sold in the foreign exchange market. The price at which one currency exchanges for another in the foreign exchange market…

Slide 1 Chapter 20 The Foreign Exchange Market Slide 2 © 2013 Pearson Education, Inc. All rights reserved.20-2 Foreign Exchange Market Exchange rate: price of one currency…

Exchange rates Currencies are bought and sold in the foreign exchange market. The price at which one currency exchanges for another in the foreign exchange market is called…

9 THE EXCHANGE RATE AND THE BALANCE OF PAYMENTS © 2014 Pearson Addison-Wesley After studying this chapter, you will be able to: Explain how the exchange rate is determined…