4.6 Exchange Rates

Fixed exchange rates	NONE YET
Floating exchange rates	NONE YET
Managed exchange rates	NONE YET
Distinction between • depreciation and devaluation • appreciation and revaluation	NONE YET

Effects on exchange rates of • trade flow • capital flows/interest rate changes • inflation • speculation • use of foreign currency reserves	NONE YET
Relative advantages and disadvantages of fixed and floating rates Higher level extension topic	NONE YET
Advantages and disadvantages of single currencies/monetary integration Higher level extension topic	NONE YET
Purchasing power parity theory (PPP) Higher level extension topic	http://opengecko.com/economics/purchasing-power-parity/