2006-08-15 07:17:00 · 3 answers · asked by The Strider 2 in Social Science ➔ Economics
most exchange rates float freely on an open market, they are determined by the forces of supply and demand. some governments and central banks may also "peg" exchange rates in what is referred to as a managed system.
check out this site for more info:
http://www.tutor2u.net/economics/content/topics/exchangerates/fixed_floating.htm
2006-08-15 07:40:51 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Supply and demand.
A classic example that is also current is Zimbabwe. They are printing incredible amounts of money to keep people happy, but all that money is still chasing the same amount of goods. That drives prices up, and the government has to raise wages so people can still buy goods...and so on.
In 2001, US$1 was about 52 Zimbabwe dollars.
Two weeks ago, US$1 was about 520,000 Zimbabwe dollars.
For more, check out this link:
www.allAfrica.com/currencies
2006-08-15 21:43:55 · answer #2 · answered by F. Frederick Skitty 7 · 0⤊ 1⤋
The I.M.F. beleive it or not, and by doing so they control alot more than just that
2006-08-15 14:25:46 · answer #3 · answered by ? 2 · 0⤊ 1⤋