Chapter 13 Exchange Rates and the Foreign Exchange Market: An Asset Approach November 2009 Preview The basics of exchange rates Exchange rates and the prices of goods Foreign exchange markets The demand for currency and other assets A model of foreign exchange markets
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Exchange Rates and the Foreign Exchange Market: An Asset Approach
The main participants:
What can the market for foreign exchange tell us about exchange rates?
If R↓, or Ee↑, or R*↑, then E↑.