School of Economics | Theories of Exchange Rate Determination

School of Economics | Theories of Exchange Rate Determination | International Economics

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14 Mar Theories of Exchange Rate Determination | International Economics

Posted at 00:23h in Part 2 by Admin 0 Comments

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For the determination of the par values of different currencies, alternative theoretical explanations have been given. Some of the prominent explanations or theories include: 1. Mint Parity Theory 2. The Purchasing Power Parity Theory 3. The Balance of Payments Theory 4. The Monetary Approach to Foreign...