Chapter Introduction
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MODULE 43
Exchange Rate Policy and Macroeconomic Policy
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43Exchange Rate Policy and Macroeconomic Policy
In this Module, you will learn to:
Explain the difference between fixed exchange rates and floating exchange rates
Discuss the considerations that lead countries to choose different exchange rate regimes
Describe the effects of currency devaluation and revaluation under a fixed exchange rate regime
Explain how macroeconomic policy affects exchange rates under a floating exchange rate regime