What Makes Currencies Move?

doi:https://doi.org/10.1007/978-1-4302-4051-8_3

What Makes Currencies Move?

Adam Kritzer-2012-01-01-Apress eBooks

1

TL;DRAbstract

A popular currency pair might fluctuate in price 18,000 times per day, and by 10%–20% per year. This implies not only a constant shift in the supply/demand equilibrium for that currency pair, but also continuous changes in the financial-economic relationship between those currencies. In this chapter, I will introduce a framework for understanding these fluctuations, both in the short term and the long term.KeywordsExchange RateInterest RateCentral BankMoney SupplyPurchase Power ParityThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Chat with Paper

AI Agents for this Paper

A popular currency pair might fluctuate in price 18,000 times per day, and by 10%–20% per year. This implies not only a constant shift in the supply/demand equilibrium for that currency pair, but also continuous changes in the financial-economic relationship between those currencies. In this chapter, I will introduce a framework for understanding these fluctuations, both in the short term and the long term.KeywordsExchange RateInterest RateCentral BankMoney SupplyPurchase Power ParityThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Keywords

CurrencyEconomicsTerm (time)Monetary economicsConstant (computer programming)Digital currencySupply and demandMicroeconomics

Chat

Click to start Chat