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 influence the foreign exchange market and how to use them to obtain guaranteed profits. The relationship between exchange rates and the demand for goods and services produced by the country issuing the currency.

units.

2. Capital movement – ​​the impact of inflationary processes on the value of the national currency, import and export of capital, the amount of cash currency on domestic and foreign exchange markets, as one of the factors of demand.

3. Gold movement and fixed exchange rates – what is the gold standard and what is it for. Regulation of national currency exchange rates through gold. The role of balance of payments indicators in the formation of exchange rates of monetary units. Creation of a stabilization fund or gold and foreign exchange reserves as a guarantee of the security of the national means of payment.

4. Capital import – when gold is purchased on foreign markets, there is an outflow of money supply abroad.

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

Fritz Machlup's Exchange Rate Theory lives up to its title; the book is best suited for traders who prefer fundamental analysis of the Forex market .

Download the book Exchange Rate Theory by Fritz Machlup.