Countries choose different exchange rate regimes

All countries have chosen a fixed exchange rate regime

All countries adhere to Bretton Woods

No country has chosen to adopt a fixed exchange rate regime

Either the dollar of the euro

Any foreign currency chosen by the country

The dollar

The euro

The degree of government intervention to fix the

exchange rate

The free-floating

regime needs the approval of the WTO

In the crawling

peg regime, the IMF decides the level of the exchange rate

In the free-floating

regime, the World Bank decides the exchange rate regime

foreign price level

expectations

about exchange rate changes

national income

foreign interest rate

Independent

monetary policy

Fixed

exchange rate

Free capital mobility

Strict labor market regulation

that the domestic currency is worth less.

that the exchange rate is lower.

that the domestic currency is worth more.

It is a rate that is set by the IMF for many different nations.

It is the real exchange rate that is most effective.

It is a measure of real exchange rate that considers the overall movement of the bilateral real exchange rates against all trade partners.

It is an exchange rate that is measured by using a number of different

techniques.

A decrease in the price of foreign currency relative to domestic

currency

An increase in the price of foreign currency relative to domestic

currency

An increase in the price of domestic money

A stabilization of the currency around the expected inflation

covered interest parity.

the law of one price.

arbitrage.

relativity.

goods markets to the market for services.

prices of individual goods to consumer demand.

exchange rates to interest rates.

the relative price level of a basket of goods to the exchange rate.