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ATARMAxxing · HSC Economics revision notes

Australia's Exchange Rate: Determination and Effects

Exchange Rates
3 · Australia's Place in the Global Economy

What this note covers

  1. How Australia's Floating Exchange Rate is Determined
  2. Key Determinants of Exchange Rate Movements
  3. Exchange Rate Movements and the Current Account
  4. Exchange Rate Movements and Inflation
  5. Exchange Rate Movements and Economic Activity
  6. Policy Implications and the Role of the RBA
  7. Evaluating Exchange Rate Policy: Benefits and Limitations of a Float

7 sections · 14 key terms & formulas · 6 common mistakes

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HSC Economics · revision note 2 of 20