Exchange Rate Theory. Fritz Machlup.

If you're tired of intrusive Forex recommendations , then this book is for you. This guide explains the fundamentals of exchange rate movements, including why one currency appreciates while another depreciates.

It also covers what influences sharp trend movements, and which events have no effect at all. It also provides an overview of the most important factors. It also devotes considerable attention to the precious metals market and trading other financial instruments.

To understand whether "Exchange Rate Theory" is worth your attention, read the summary:

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.