Where is the flaw in this logic? A countrys balance of payments tracks the supply and demand
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Where is the flaw in this logic?
“A country’s balance of payments tracks the supply and demand for its currency. Since the balance of payments on capital plus current account is always zero, supply must always be equal to demand and therefore the exchange rate never changes.”
Exchange RateThe value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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Related Book For
Exchange Rates and International Finance
ISBN: 978-0273786047
6th edition
Authors: Laurence Copeland
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