POLSCI 160 Chapter Notes - Chapter Chapter 9 Vocab: Allies Of World War Ii
17 Oct 2017
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Exchange rate: the price at which one currency is exchanged for another. Appreciate: in terms of a currency, to increase in value in terms of other currencies. Depreciate: in terms of a currency, to decrease in value in terms of other currencies. Devalue: to reduce the value of one currency in terms of other currencies. Monetary policy: an important tool of national governments to influence broad macroeconomic conditions such as unemployment, inflation, and economic growth. Typically, governments alter their monetary policies by changing national interest rates or exchange rates. Central bank: the institution that regulates monetary conditions in an economy, typically by affecting interest rates and the quantity of money in circulation. Fixed exchange rate: an exchange rate policy under which a government commits itself to keep its currency at or around a specific value in terms of another currency or a commodity, such as gold. Gold standard: the monetary system that prevailed between about 1870 and.
