Lula Light. Fixed vs. Float Fixed exchange rate: ER regime where a domestic monetary authority sets the relative value of the currency. Floating exchange.

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Presentation transcript:

Lula Light

Fixed vs. Float Fixed exchange rate: ER regime where a domestic monetary authority sets the relative value of the currency. Floating exchange rate: ER regime where the supply and demand in the foreign exchange market sets the relative value of the currency. Managed floating exchange rate: Floating ER regime with S-R domestic intervention

Indexation vs. de-indexation Indexation: Linking of wage rates and financial instruments to a price index. De-indexation: Breakup of the prices-wages linkage.

Moratorium / Arrears Moratorium: A legal authorization to a debtor to postpone payment for a certain time; the period of such a postponement. Arrears: Behind in the discharge of duties or liabilities; in indebtedness, in debt.

References All definitions from: Oxford English Dictionary (online) And Encyclopædia Britannica Online (academic edition)