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fixed exchange rate |
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Fixed exchange rate A country's decision to tie the value of its currency to another country's currency, gold (or another commodity), or a basket of currencies.
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| The government brought spending in line with revenues and moved away from fixed exchange rates, allowing the Indian currency to reflect world prices. Even under fixed exchange rates it is therefore likely that trade imbalances will disappear over time. Such a view must have seemed then like an academic curiosity, the academy said, because at the time all countries were linked together by fixed exchange rates within the so-called Bretton Woods System. |
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