找回密码

想起密码去登录

绑定手机号

依据《网络安全法》为保障您
相关功能的正常使用，账号需绑定手机

密码登录

微信登录

微信扫描二维码登录“帮考网”

还没账号？立即注册

微信登录

短信登录
密码登录

登录即代表同意《用户协议》和《隐私政策》

还没账号？立即注册

Currency Regimes– Fixed Parity and Target Zone

帮考网校2020-08-06 15:06:02

Fixed parity and target zone are two types of currency regimes that countries can adopt to manage their exchange rates.

Fixed parity regime involves setting a fixed exchange rate between the domestic currency and a foreign currency, typically the US dollar or the euro. The central bank intervenes in the foreign exchange market to maintain the fixed exchange rate by buying or selling domestic currency as necessary. This regime provides certainty and stability for international trade and investment, but it can also limit a country's ability to respond to economic shocks and can lead to imbalances in trade and capital flows.

Target zone regime involves setting a range of exchange rates within which the central bank allows the exchange rate to fluctuate. The central bank intervenes in the foreign exchange market to keep the exchange rate within the target zone by buying or selling domestic currency. This regime provides more flexibility than fixed parity, allowing the exchange rate to adjust to economic shocks and changes in market conditions. However, it can also be more difficult to maintain than fixed parity, as the central bank must constantly monitor and adjust its interventions to keep the exchange rate within the target zone.

Both fixed parity and target zone regimes require a high level of commitment from the central bank to maintain the exchange rate, and can be vulnerable to speculative attacks and capital flight. Ultimately, the choice of currency regime depends on a country's economic conditions and policy goals.

帮考网校

找回密码

绑定手机号

重置密码成功

注册成功

Currency Regimes– Fixed Parity and Target Zone

推荐视频

推荐文章

推荐问答

cfa考试中gain and loss是什么意思？