Topic updates
Floating versus Fixed Exchange Rates
14th November 2022
We have just added a new revision video to the Economics Reference section on the merits and drawbacks of floating versus fixed exchange rates.
Choice of currency system is one of the most important decisions that a government takes when operating macroeconomic policy.
The UK for example operates a free floating currency whereas Denmark fixes their currency (the Krone) against the Euro and the Bahamas fixed against the US dollar.
And here is a Quizlet retrieval activity on exchange rates / currencies that might be useful.
This Quizlet always proves popular as a classroom activity - here are 32 countries each with a differently-named currency - can students match them up?
- Economics
- Blog
- Topic updates
- Exchange Rate
- Equilibrium Exchange Rate
- Fixed Exchange Rate
- Floating exchange rate
- Currency Appreciation
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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