International Economics: A Heterodox Approach by Berg Hendrik Van den

Author:Berg, Hendrik Van den [Berg, Hendrik Van den]
Language: eng
Format: epub
ISBN: 9781317370659
Publisher: Taylor and Francis
Published: 2016-12-07T16:00:00+00:00

in:

Country A

1a

.4a

.29a

Country B

2.5b

1b

.71b

Country C

3.5c

1.4c

1c

12.4 Effective Exchange Rates

With about 200 currencies in the world, it is very difficult to determine whether a specific currency appreciates or depreciates. On any particular day, an individual currency may depreciate against some foreign currencies and appreciate against others. To provide better information about a currency’s appreciation or depreciation, government agencies, private banks, and international organizations compile broader exchange rate measures called effective exchange rates , which are weighted averages of sets of foreign exchange rates.

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