Exchange Rates- A primer

Exchange Rates- A primer - Danyang Zhang International...

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Danyang Zhang International Finance section 2 Dr. Suarez April 19, 2011 Exchange Rates: A Primer The article Exchange Rates: A Primer, discussed how American political elites don’t know anything about exchange rates. In attempting to save and better the economy they are making mistakes by using reversed logic in manipulating the exchange rates. They have myths about the exchange rates and by setting the wrong policy with the central bank, it can put the United States in danger. For example, Treasure Secretary John Snow believes that devaluating the dollar will help the United States. He believes that it would help United States with more exports to other countries, while decreasing the number of imports, thus saving more jobs in the U.S. job market. The article describes three main myths they have about exchange rates and following a paragraph explaining why the myth is wrong and the danger of having the wrong perception about exchange rates. For myth #1: Floating currencies represent a
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Exchange Rates- A primer - Danyang Zhang International...

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