Exchange rate theory. Fritz Machlup.

If you are tired of intrusive Forex recommendations , then this book is just for you. This manual reveals the basics of the movement of exchange rates, why one monetary unit becomes more expensive, while another, on the contrary, becomes cheaper.

What influences sharp trend movements and what events have no effect at all, an overview of the most important factors.

In addition, quite a lot of attention is paid to the market of precious metals and trading in other financial instruments. In order to understand whether “The Theory of Exchange Rate” is worth your attention, read its brief content:

1. Analysis of supply and demand - how these two factors affect the foreign exchange market and how to use them to obtain guaranteed profits. The relationship of exchange rates with the needs for goods and services produced by the country of the issuer of a given currency

units.

2. Capital movement - the influence of inflationary processes on the value of the national currency, the import and export of capital, the amount of cash currency on domestic and foreign exchanges, as one of the factors of demand.

3. Movement of gold and fixed exchange rates - what is the gold standard and why is it needed.

Regulation of national currency rates through gold. Participation of balance of payments indicators in the formation of currency rates. The creation of a stabilization fund or gold and foreign exchange reserves as a guarantee of the security of the national means of payment. 4. Import of capital - when buying gold on foreign markets, there is an outflow of the money supply abroad.

5. Interest rates and their impact on the circulation of money supply , regulation of inflation processes. Currency speculation in foreign and domestic markets.

The exchange rate theory of Fritz Machlup fully corresponds to its title; the book is more suitable for a trader who prefers fundamental analysis of the Forex market .

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