The exchange rate is a key macroeconomic variable. It has a huge influence on the performance of the economy and the effectiveness of macroeconomic policy.
In recent times, the exchange rate has been seen as a crucial indicator of economic expectations, as in the cases of Brexit and the election of Donald Trump as the US president. The question to be discussed here shows how the analysis of exchange rates may be crucial for tackling A-level economics questions.
Your organisation does not have access to this article.
Sign up today to give your students the edge they need to achieve their best grades with subject expertise
Subscribe
