Traditional Culture Encyclopedia - Traditional culture - What does the traditional exchange rate theory include?
What does the traditional exchange rate theory include?
Traditional exchange rate theories include:
Exchange rate theory is a theoretical model that external price-exchange rate determines currency and its changes, also known as exchange rate determination theory. Its central idea is that the exchange rate is determined by foreign exchange supply and demand. Western exchange rate theory is complex and diverse, including traditional exchange rate theory and modern exchange rate theory. Some demonstrate the exchange rate decision, while others explain the exchange rate change.
As a part of financial theory, exchange rate theory has gradually developed from a subsidiary theory to an independent theory with the development of exchange rate system from simple to complex.
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