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Ammayum Makalum Malayalam Kambi Katha Ente Chitta
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Ammayum Makalum Malayalam Kambi Katha Ente Chitta
Forex fixing by individual countries is not sustainable in the long term. There are quite a few recent examples of countries suffering serious financial crisis because they have fixed their currencies high for too long. (e.g. Mexico, Russia and parts of Asia). Devaluing or revaluing a currency downwards proves that a government is no longer able to support the high value that is has pegged its currency. Fixing a currency higher than its fair market value requires a government to institute a number of measures to show the rest of the market that it is serious about its desired position. There are a few difficulties that can be attributed to floating a currency but ultimately these are far outweighed by the strength and stature a currency attains from the equilibrium attained by floating in the international market.supply and demand other than the price of the good in question are not explicitly represented in the supply-demand diagram, changes in the values of these variables are represented by moving the supply and demand curves (often described as "shifts" in the curves). By contrast, responses to changes in the price of the good are represented as movements along unchanged supply and demand curves.
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Forex fixing by individual countries is not sustainable in the long term. There are quite a few recent examples of countries suffering serious financial crisis because they have fixed their currencies high for too long. (e.g. Mexico, Russia and parts of Asia). Devaluing or revaluing a currency downwards proves that a government is no longer able to support the high value that is has pegged its currency. Fixing a currency higher than its fair market value requires a government to institute a number of measures to show the rest of the market that it is serious about its desired position. There are a few difficulties that can be attributed to floating a currency but ultimately these are far outweighed by the strength and stature a currency attains from the equilibrium attained by floating in the international market.supply and demand other than the price of the good in question are not explicitly represented in the supply-demand diagram, changes in the values of these variables are represented by moving the supply and demand curves (often described as "shifts" in the curves). By contrast, responses to changes in the price of the good are represented as movements along unchanged supply and demand curves.
