Fiscal policy refers to how a government uses taxation and government spending to influence the economy. This policy
Glossary Category: International Trade
government policy objective of stability of the current account
The stability of the current account is an economic goal where a country aims to keep its balance
effect of protectionist policies on the current account
Protectionist policies are government actions created to limit imports. The goal is to support local businesses and improve
factors causing exchange rate changes
Factors causing exchange rate changes are economic and financial variables that shift the demand or supply for a
determination of a floating exchange rate
The determination of a floating exchange rate refers to how the value of a currency is set by
currency appreciation
Currency appreciation occurs when the exchange rate of a country’s currency rises in a floating exchange rate system.
AD/AS analysis of exchange rate changes
AD/AS analysis of exchange rate changes examines how a change in a country’s exchange rate — either appreciation
floating exchange rate
A floating exchange rate (also called a freely floating exchange rate) is a system in which the exchange
fixed exchange rate
A fixed exchange rate (also called a pegged exchange rate) is a system in which the government or
exchange rate
An exchange rate is the price of one currency expressed in terms of another currency — specifically, how