Fixed Exchange Rates - How Are They Managed?

Fixed and Floating Exchange Rates - A look at the difference between fixed and floating exchange rates, specifically looking at how fixed exchange rate regimes are managed

[FilmsPharmacy]

Bro... you're a living legend. So precise and clear at explaining things. Keep it up man.

[austinwachira]

Man makes you grasp Economics right to the very core!!

[salmanqureshi]

this is a really good video, I actually understand exchange rates now.
Thanks a lot and keep these videos coming.

[rishikakedia]

econ plusdal i love you. you might be the only reason m not failing my econ alevel.

[michellesilva]

i understand exchange rates !! i was terribly confused!!

[bengodleman]

Brilliant video !!! Thanks for taking the time to make this !!!

[ouicestmoietquoi]

EconplusDal, I don't understand why the government buying pounds causes demand for pounds to increase. Who is demanding pounds as a result of gov buying them? Surely the gov buying pounds decreases supply which is why the price rises? Please help me understand!

[ManishKumar-rrsz]

Your videos are awesome bro, thanks a lot for the effort.

[amankataria]

Hi Sir. In the beginning of the video, you said you made a video for specifically floating exchange rates, however I have been looking through all your videos and I cant seem to find that video. Would you mind giving me the link to that video?

Thanks for all the time and effort spent making these fantastic videos

[muhammadhilal]

What an clear explanations, thanks :)

[emvn]

if you sell the pound against wouldn't there be an inward shift in the supply of the pound?

[AlevelStudent-cy]

By buying up the pound, wouldn’t this lead to a contraction is supply which would cause a revalue of the exchange rate ? Why would demand increase ?

[LindaAndrews-lyqf]

Depreciate: Sell the pound; buy foreign currency so increase supply of pound and bring it down
Appreciate: use foreign reserves to buy Pound to increase demand

[oliverburgess]

for the second graph why would the quantity of the pound increase if the government bought more of them ?

[billparkinson]

How are the fixed/pegged rates calculated to begin with? I believe there’s bands, or a range that they move in?? How do you figure out what the bands are? How will you know if they change?

[lasandrabuffie]

I really appreciate your video first of all. Quick question though: when the central bank sells the pound on the market you call it an increase in supply, but when it buys the pound it is an increase in demand. Why aren't the two operations just polar opposites of one another? As in, why can't selling the pound be considered a decrease in demand or buying the pound be considered a decrease in supply?

[joewatkins]

if a country has a fixed exchange rate, what can they do with the exchange rate to decrease inflation?

[maxcotton]

How might a fixed exchange rate cause a deflationary bias in the economy?

[joeball]

Could someone send me the link for the previous video he is talking about at the start

[artupayrus]

surely if you are buying £'s on the right side diagram supply would shift left instead of having an effect on demand because if you shift demand to the right, quantity is shown to increase, whilst if you were to decrease supply of pound it would show quantity to decrease.