Search for tag: "currency crises"

Aggregate Demand with Fixed Exchange Rate

This chapter begins by explaining the impact of aggregate demand in an open economy, via fixed and flexible exchange rates. In a fixed or pegged exchange rate, the central bank doesn’t allow…

From  SDG Academy 104 plays

Exchange Rate Arrangements

In this chapter, Professor Larraín covers the different forms of exchanging arrangements and some real-world cases of collapsing exchanging arrangements, or currency crises. A common case of…

From  SDG Academy 7 plays

Currency Crises

This chapter focuses on what is behind a currency crisis, which is when the exchange rate depreciates and the local currency loses values. There are three types of models that explain the reason for…

From  SDG Academy 6 plays

International Comparisons of Income (PPP)

One of the challenges that faces macroeconomists is comparing the gross domestic product across countries. Using a numerical illustration of the Purchasing Power Parity (PPP), which is the concept of…

From  SDG Academy 16 plays