AzureWave
Wed Aug 07 2024
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6 answers
1349
Do trade flows affect exchange rate determination?
Could you elaborate on how trade flows might influence the determination of exchange rates? Are there specific mechanisms at play that LINK the volume or direction of trade between countries to fluctuations in their currencies' relative values? How do economists typically analyze the relationship between trade flows and exchange rates, and what are some of the key factors they consider? Additionally, are there any recent examples or case studies that demonstrate the significance of this relationship in practice?
