Tag Archives: Floating exchange rate system

Money Matters – Part II

Theoretically speaking the floating exchange rate system lets the market forces determine the exchange rates, however in the real world scenario none of the economies leave the exchange rates at the mercy of market forces but do intervene through regulatory and monetary measures.

Money Matters – Part I

Currency regimes around the world differ in many ways and do not necessarily follow a fixed pattern however broadly speaking there are two basic categories of currency regimes, fixed currency regime and floating currency regime.