Supply-side policy and floating exchange rates

What this note covers

1. What supply-side policy targets and how it differs from demand management
2. Types of supply-side policy
3. How a floating exchange rate is determined
4. What shifts currency demand and supply
5. Effects of an appreciation and a depreciation on the objectives
6. Worked example: the Corren appreciates in a mining boom
7. How this topic is examined and what separates a top response

7 sections · 10 key terms & formulas · 6 common mistakes