1. Exchange Rates and Exchange Rate Systems
Chapter 10
Exchange Rates and Exchange Rate Systems

2. Examples of Exchange Rates
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3. FIGURE 10.1 The Demand Curve for Foreign Exchange
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4. FIGURE 10.2 The Supply of Foreign Exchange
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5. FIGURE 10.3 Supply and Demand in the Foreign Exchange Market
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6. FIGURE 10.4 An Increase in Demand for British Pounds
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7. FIGURE 10.5 An Increase in the Supply of British Pounds
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8. Exchange Rates in the Long Run: Purchasing Power Parity
Purchasing power parity: the equilibrium value of an exchange rate is at the level that allows a given amount of money to buy the same quantity of goods abroad as it will buy at home
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9. FIGURE 10.6 The Effects of an Increase in Home’s Interest Rate
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10. Determinants of an Exchange Rate: Summary
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11. FIGURE 10.7 Fixed Exchange Rates and Changes in Demand
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12. FIGURE 10.8 Selling Reserves of Pounds to Counter a Weakening Dollar
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