IDEAS home Printed from https://ideas.repec.org/h/spr/sptchp/978-1-4614-1635-7_8.html
   My bibliography  Save this book chapter

Exchange Rates

In: International Trade and Global Macropolicy

Author

Listed:
  • Farrokh Langdana

    (Rutgers Business School)

  • Peter T. Murphy

Abstract

The purchase of goods and services, or of assets, from overseas generally cannot be done with one’s home currency. Overseas entities demand payment in their home currency, as this is what they use in their day-to-day transactions. Enter the exchange rate, which is simply the price of a unit of foreign currency in terms of units of one’s own currency. We discuss the spot, forward, and expected exchange rates and see how spot and expected/forward exchange rates interact. We review floating versus managed and fixed (pegged) exchange rates. Armed with our knowledge of exchange rates, we enter the world of hot capital flows and see how huge sums are earned and lost in the exchange rate market. We review the example of Iceland’s 2008 currency collapse.

Suggested Citation

  • Farrokh Langdana & Peter T. Murphy, 2014. "Exchange Rates," Springer Texts in Business and Economics, in: International Trade and Global Macropolicy, edition 127, chapter 0, pages 137-167, Springer.
    • Handle: RePEc:spr:sptchp:978-1-4614-1635-7_8
    DOI: 10.1007/978-1-4614-1635-7_8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sptchp:978-1-4614-1635-7_8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.