Fixed vs Floating Exchange Rates (Arguments For and Against)

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  • čas přidán 3. 06. 2024
  • Fixed vs Floating Exchange Rates (Arguments For and Against) - The arguments for and against a fixed and floating exchange rate

Komentáře • 62

  • @erynmurphy1439
    @erynmurphy1439 Před 8 lety +28

    Thank you for such a clear explanation I have been attempting to get my head around this for weeks
    .Just saved my Alevel thank you.

  • @lucyturner634
    @lucyturner634 Před 7 lety +23

    you have saved my A-Levels, thank you so much!!

    • @lildhruvee
      @lildhruvee Před dnem

      What did you end up getting?
      I have my A2 macro tmrw

  • @monjesichone3489
    @monjesichone3489 Před 6 lety +22

    very useful information. I had a whole essay assignment on this and it was a breeze after this video

  • @nigelmaradzika8167
    @nigelmaradzika8167 Před 3 lety +11

    You the man and thank you so much keep doing your thing you are saving lives. God bless!!!!!

  • @DescartesCarts
    @DescartesCarts Před 7 lety +10

    real G! gonna pass this A level cause of you

  • @EstherMNan
    @EstherMNan Před 7 lety +7

    So helpful. Thank you so much

  • @shenellakarunaratne
    @shenellakarunaratne Před 8 lety +17

    Econ makes much more sense now :P thank you!

  • @heyihatehemlock7065
    @heyihatehemlock7065 Před 4 lety +2

    Wow. In one take. Nice man!
    Thank you btw!

  • @muhammadhilal5807
    @muhammadhilal5807 Před 2 lety +1

    Another time, you made my day :)

  • @shafeeqaabdussalam6195
    @shafeeqaabdussalam6195 Před rokem +1

    hello, thank you for the video. can you talk about how exchange rates impact capital flow?

  • @luisatamayo52
    @luisatamayo52 Před 8 lety +5

    you are the best

  • @leonardorobledo8394
    @leonardorobledo8394 Před 6 lety

    Super helpful...thanks!

  • @sofianeaguiar9953
    @sofianeaguiar9953 Před 5 lety +3

    Hi I don’t really understand what speculative attacks are, could you briefly explain it to me, cheers

  • @aafaq2k168
    @aafaq2k168 Před 2 lety

    Thanks Man u helped alot.

  • @haikofriese1329
    @haikofriese1329 Před 7 lety

    in terms of the fixed exchange rate, the exchange rate will not depreciate or appreciate drastically amongst other countries, right?

  • @supertrainmaniac
    @supertrainmaniac Před 6 lety +4

    If exchange rates are floating, aren't they at more risk of speculation if they are not stabilised by government currency supplies

  • @nadiahhakim8194
    @nadiahhakim8194 Před 2 lety

    hello! do you have a video on managed float exchange rate system?

  • @ladieelovemuzic22698
    @ladieelovemuzic22698 Před 7 lety +4

    Hello! Your videos are very very helpful, please can you further explain the point no. 4 under floating exchange rate on 'partial automatic correction for a trade deficit'?

    • @mtsl7780
      @mtsl7780 Před 2 lety

      I believe it is hinting at the Marshall leaner condition and the J curve

  • @justinbrian6083
    @justinbrian6083 Před 8 lety +1

    Can u pls make a video of "A fixed exchange rate regime is more
    Desirable than a floating exchange rate system for international businesses." Thx in advance

  • @HazzaGFX
    @HazzaGFX Před 8 lety

    Can you evaluate the effects of a trade deficit by saying although a currency will depreciate in value, if the currency has a fixed exchange rate, the government will use its reserves to correct the change (therefore making it not a problem)?

    • @mtsl7780
      @mtsl7780 Před 2 lety

      if the exchange rate is fixed, then there will not be a depreciation??

  • @durthpreetsyan5033
    @durthpreetsyan5033 Před 8 lety +3

    Would a reduced value of a currency, increasing inflation would also increase cost push factors for say the UK, more so than demand pull? P.S great job with the videos Mr Dal.

    • @EconplusDal
      @EconplusDal  Před 8 lety +1

      +Durthpreet Syan Lovely evaluation, yes absolutely. Great that your watching these, keeping spreading the word

    • @durthpreetsyan5033
      @durthpreetsyan5033 Před 8 lety +2

      +EconplusDal hehe thanks ☺️

  • @nazifishrak8275
    @nazifishrak8275 Před 5 lety +11

    I think the the last advantage of floating exchange rate is wrong. There is likely to be more speculative attacks in floating exchange rates as the exchange rate fluctuates. It will cause cause more speculations. However in fixed exchange rates as the rate is fixed there will be no likely speculation as the chance of the currency appreciating or depriciating is very low unless the govt decides so.

    • @georgetracey926
      @georgetracey926 Před 5 lety +5

      nah in a fixed exchange rate u have to remember it can still lose value its just the government will intervene to try and restore its value. It means that a currency is more likely to be either over valued or undervalued, because the government is fighting market forces; hence more speculative attacks

    • @nithushaan05
      @nithushaan05 Před rokem

      @@georgetracey926 I would say both are equally correct. Floating exchange rate systems are also prone to speculative attacks and whilst fixed exchange rate systems are maintained by the government, they may be unsustainable to maintain predominantly due to the expenses associated with large foreign currency reserves

    • @user-zc9hk2jl2x
      @user-zc9hk2jl2x Před 15 dny

      @@georgetracey926 yes in a fixed system for fx traders theres is more certainty regarding exchange rate fluctuations and as a result of that buying up a currency when it is undevalud or below the fixed level and selling the currency when it is overvalued or above the fixed level. theres not that degree of certainty in a floating echange rate system as even if a currency depreciates fx traders would have no assurance or sense of certainty due to a lack of intervention within the exchange rate system

  • @bendevaney8602
    @bendevaney8602 Před 5 lety

    i love u so much

  • @JoyNuL3
    @JoyNuL3 Před 9 lety +3

    Could you do a video on labour markets for Aqa A2

    • @amankataria1997
      @amankataria1997 Před 9 lety +1

      JoyNuL3 I would highly recommend making a video on labour markets too, as its a question that tends to come up every year in econ 3 and with your thorough explanations and diagrams, it would be great for all us students.

  • @tamanna6203
    @tamanna6203 Před 8 lety

    could you recommend manged exchange rates as the best option then

  • @aizazaheer8995
    @aizazaheer8995 Před 5 lety +1

    can someone plz tell me where is the video where a floating exchange rate can fix trade deficit? i cannot find it and i need it immediately as it's for my exams

    • @PS-bl6ee
      @PS-bl6ee Před 5 lety

      czcams.com/video/WgpPDGeEblg/video.html

  • @user-ri4ze9do9c
    @user-ri4ze9do9c Před 5 lety

    thanks for your video, but I have a more basic question. why there is a fluctuation in the graph of fluctuating exchange rate but not in a fixed exchange rate. Is this because the fixed exchange rate will not be affected by the market force?

  • @jonluo1172
    @jonluo1172 Před 3 lety

    I LOVE U

  • @G3G117
    @G3G117 Před 8 lety +2

    fucking brilliant video

  • @saubanasghar3660
    @saubanasghar3660 Před 9 lety

    could u say that volatility may deter fdi?

  • @praneelprasad9146
    @praneelprasad9146 Před 19 dny +2

    free potts

  • @ZotzFootball
    @ZotzFootball Před 6 lety

    Very good video but could you pls try to write more legibly? I had huge difficulties to make out some words. (Im not a native english speaker)

    • @EconplusDal
      @EconplusDal  Před 6 lety +9

      No worries, but I feel the writing here is quite easy to follow...

    • @user-io5wy9nn5c
      @user-io5wy9nn5c Před 6 lety +9

      Your handwriting is perfectly legible. Especially compared to some of my teachers who seem to use an ancient language instead of English when they write.

  • @tommm44
    @tommm44 Před 15 dny

    Am I leaving revision too late?

    • @jc29278
      @jc29278 Před 15 dny

      send prayers for paper 2 pls

  • @jonluo1172
    @jonluo1172 Před 3 lety

    oi the fuck was the future shit how am i supposed to trade with my future exchange rate and come back in the present time to appreciate a future currency

  • @josephgreen1100
    @josephgreen1100 Před rokem

    need to eleaborate more

  • @nobodylol2164
    @nobodylol2164 Před 19 dny

    Free potts

  • @khalidabdalla9040
    @khalidabdalla9040 Před 8 lety

    Bruh...

  • @priyankamedhi8688
    @priyankamedhi8688 Před 2 lety

    Is he an Indian?????

  • @closerhawk687
    @closerhawk687 Před 6 dny

    youre so beautiful

  • @aayushnaik3040
    @aayushnaik3040 Před 18 dny

    Dal have my baby