Nominal fixed exchange rates Shocks and compared with excheang rates calculated in way of purchasing power parity and balance of trade | ||
| Journals eduction for girls | ||
| Article 1, Volume 0, Issue 19, October 2018, Pages 89-126 | ||
| Abstract | ||
| Monetary authority intervenes to determine the value of its currency to ensure the improvement of economic situation in general and the trade balance in particular, many countries devaluate its currency (raise of exchange rate) and cause intended shock to maintain its competitive position in the international markets, But the devaluation process may not achieve their objectives If it carries out randomly. This study tried to workout standards more accurate and more realistic to determine the exchange rate, based on the method of purchasing power parity and the way trade balance, these standards have been applied at four countries, namely Pakistan, Kenya, Morocco and Mexico, which followed a fixed exchange rate system and has devaluate their currencies in different years. The studied countries failed to determine the appropriate time to devaluate of their currencies that does not succeed in achieving remarkable results of the mentioned economies, but on the contrary flipped operation in Mexico into an economic crisis. | ||
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