Exchange rates and TWI: market determination, movements and effects

What this note covers

1. Quote, convert and measure a bilateral movement
2. Demand and supply determine the floating rate
3. TWI measures the currency against a trade-weighted basket
4. Effects on trade, inflation and aggregate activity
5. Effects on income, finance and different groups
6. Integrate diagrams, arithmetic and evaluation

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