国际金融托马斯A普格尔第二章.pptVIP

If we replace real exchange rate (RER) with nominal exchange rate in the calculation of nominal effective exchange rate (NEER), we have our third measure of change in exchange rate, namely real effective exchange rate (REER). * Floating exchange rates Downward-sloping demand curve Equilibrium exchange rate Shift in demand and supply curves Fixed exchange rates Par value and the narrow band Supply and demand gap Government intervention * What makes the demand curve slope downward? Fixed the price $1.98/￡ The British government must buy (320-270)million pounds, equal to the gap AB Fixed the pri