market inflation

Why Might A Country Choose To Let Its Currency Float?

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Why Might A Country Choose To Let Its Currency Float? Because a central bank must keep exchange rates fixed, it is very difficult for the central bank to conduct countercyclical monetary policy. Why might a country choose to let its currency float? A floating exchange rate is self-regulating. … increases the supply of loanable funds,

What Factors Affect The Forex Market?

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What Factors Affect The Forex Market? What factors affect the forex market? Inflation Rates. Changes in market inflation cause changes in currency exchange rates. … Interest Rates. … Country’s Current Account / Balance of Payments. … Government Debt. … Terms of Trade. … Political Stability & Performance. … Recession. … Speculation. What makes a strong