Exchange rate essay help!! (1 Viewer)

[Currybear]

when writing an economic essay for how the value of the AUD is determined and the impacts of it on the economy, can i simply

go into detail about how it appreciates then in a paragraph explain that a depreciation occurs when the opposite happens

and then do the same for how it affects the economy, cause im up to 1500 words and i haven't mentioned how the AUD depreciated or the impacts of an appreciations

 

[Currybear]

BUMP

 

[Currybear]

BUMp

 

[MRPDlDDY]

An economics essay must be concise... if you're doing around >2000 words that is too much
It's more important to talk about the transmission mechanism, being the effects of currency changes than how it occurs

 

[Currybear]

transmission mechanism

What do you mean?

 

[golgo13]

I think you should start off with some context what system does the AUD run on is it pegged or is it a floating market, then go onto the appreciation and depreciation give some evidence of real life scenarios that have been affected due to the changes such as importing goods or the tourism industry, those shouldn't be hard to find they've been covered by the media before

 

[hasdhil]

i would start off by saying the e/x rate system australia currently has because it is through this system that the value of AUD is determined. You could mention demand and supply because they influence whether it appreciates or depreciates in a free market. RBA influences can be also be talked about very briefly, depending how you are going with you word limit if you have one. When talking aout the impacts on the economy, break it down into the positives and negatives of both an appreciation and depreciation. This is how i could answer the question, different people do it different ways.