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Exchange Rates: Dynamics, Expectations and Adjustment

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£83 today · all-time low £82 (Jun 2026) · usually £83

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£83.82 £81.82 £82.25 £82.69 £83.13 £83.57 £84.00 26 April 2026 12 May 2026 29 May 2026 14 June 2026 01 July 2026

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Price levels: 3 different prices over 67 days

Description

An exchange rate is the current market price for which one currency can be exchanged for another. The spot exchange rate refers to the current exchange rate whereas the forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date. Exchange rates vary because of changes in the relative demand for different countries' goods and services and because national monetary and fiscal policies are inconsistent with each other. Differences in tax rates and in interest rates cause capital flows which affect a country's balance of payments and, consequently, its exchange rate. An overvalued exchange rate leads to a current account balance of payments deficit and bearish speculative capital movements; an undervalued exchange rate creates a current account surplus and an influx of capital. Volatile exchange rates and volatile interest rates coincide. This book examines important issues in the field.

Product Specifications

Format
hardcover
Domain
Amazon UK
Release Date
10 September 2008
Listed Since
04 January 2008

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