Exchange rate in Australia free essay sample

A look at how the exchange rate in Australia impacts the countrys economy. This paper examines the exchange rate in Australia and its effects on the overall economy of the country. The author looks at the fluctuations and the economic conditions that impact the exchange rate and the advantages and disadvantages of fixed and floating exchange rates. Prior to December 1971, the value of $A was pegged to the value of the pound sterling. From December 1971 to September 1974, the value of the $A was pegged to the value of the US dollar. From September 1974 to November 1976, the value of the $A was pegged to a trade-weighted index on a basket of currencies. Since November 1976 to December 1983, the exchange rate for Australia dollar was determined by the Trade-Weighted index [TWI], but additional fluctuation was incorporated when economic conditions required them. Unfortunately, the main criticism of the TWI was that it did not make the allowances for capital movements in and out of the economy. We will write a custom essay sample on Exchange rate in Australia or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page