Currency depreciation happens when the market value of a currency decreases compared to other currencies in an exchange
Tag: exchange rate
protectionist policy
A protectionist policy refers to government actions taken to shield local businesses from foreign competition by making it
expenditure-reducing policy
Expenditure-reducing policies are economic strategies used to lower the total amount of money spent within a country. The
expenditure-switching policy
Expenditure-switching policies are economic strategies used to move spending away from foreign products toward products made within a
capital account
The capital account is a part of a country’s balance of payments. It records the movement of capital
financial account
A financial account is a record within a country’s balance of payments. It keeps track of the change
exchange rate policy
Exchange rate policy refers to actions taken by a government or central bank to influence the value of
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.