(Macro) Episode 33: Exchange Rates

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How do currency values rise and fall? Why would a country want to manipulate the value of its own currency? “(Macro) Episode 33: Exchange Rates” by Dr. Mary J. McGlasson is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.
Video Rating: 4 / 5

15 thoughts on “(Macro) Episode 33: Exchange Rates”

  1. Hopefully I don’t come off as viewing the practice of pegging as right or wrong, just stating why it is that the US complains about it…? Thanks for the comment.

  2. ASSUMING THAT CHINA MANAGE ITS CURRENCY TO HAVE A TRADE SURPLUS WITH THE REST OF THE WORLD IS DOWNRIGHT STUPID. LOL

  3. Is there a correlation between the amount of securities a government sells and the value of its currency? Who sets the rate of interest on securities? Is that also the Federal Reserve? Does the interest rate on securities have any effect on other interest rates?

  4. That’s a lot of questions!! Yes, because the securities market affects the money supply (see the video on Monetary policy), it affects both the currency value and the market interest rate. Most rates are market (i.e., supply and demand) driven, but some, like the discount rate in the US, are set directly by the Central Bank.

  5. Ignore this comment. This is just to prove to my ECON-1 teacher that I watch things she tells me to watch.

  6. I LOVE MJMFOODIE!!!!

    Explains everything soo well, unlike my uni lecturers lol 🙂

    God Bless yaaa 😀

  7. i wish i could give you my tuition! my macro professor was horrible this year! keep up the good work!

  8. thank you for these videos. I have 1 question… do interest rates (in general) set by central banks, or private banks, directly impact the Forex market?

  9. central banks interest rate can affect both private bank and the Forex. like the OMO if the central banks would increase it’s rates to incr. the demand for T-bond can, which decrease the money in an economy which increase its value in the FOREX. now the private banks only relay on corp. bond rate and corps. base their rates on CB’s rates. i am not sure about it but i think its right and my explanation is not complete due to the limit of char. here hope i have helped even a little

  10. This is a really, really amazing video, all of them are! They give great explanations with just the right amount of humor. I’m not going to be revisiting IGCSE economics after my boards in May this year, but I’m going to recommend this source to everyone who is, thanks again!

  11. I’ve always found this stuff difficult to comprehend. You have a gift for simplifying this stuff…..thank you

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