Equilibrium exchange rate

 

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Equilibrium exchange rate

Exchange rate at which demand for a currency is equal to the supply of the currency in the economy.



Equilibrium exchange rate

Similar Matches

Multi-cone equilibrium

Multi-cone equilibrium

A free-trade equilibrium in the Heckscher-Ohlin Model in which prices are such that all goods cannot be produced within a single country, and instead there are multiple diversification cones. This, or a two cone equilibrium, will arise if countries' factor endowments are sufficiently dissimilar compared to factor intensities of industries. Contrasts with one cone equilibrium.


Nash equilibrium

Nash equilibrium

An equilibrium in game theory in which each player's action is optimal given the actions of the other players. E.g., in a tariff-and-retaliation game, with each country able to improve its terms of trade with a tariff, zero tariffs are not Nash, since each can do better by raising its tariff. A Nash equilibrium, with positive tariffs, is likely to be inferior to free trade for both.


Market equilibrium

Market equilibrium

Equality of supply and demand. See equilibrium.


One cone equilibrium

One cone equilibrium

A free-trade equilibrium in the Heckscher-Ohlin Model in which prices are such that all goods can be produced within a single country, and there is only one diversification cone. This will arise if countries' factor endowments are sufficiently similar compared to factor intensities of industries. Contrasts with multi-cone equilibrium.


Partial equilibrium

Partial equilibrium

Equality of supply and demand in only a subset of an economy's markets -- usually just one -- taking variables from other markets as given. Partial equilibrium models are appropriate for products that constitute only a negligibly small part of the economy. They are used routinely (not always appropriately) for analysis of trade policies in single industries. Contrasts with general equilibrium.


Further Suggestions

Balance of payments equilibrium
Equilibrium
Equilibrium position
Disequilibrium
Equilibrium level
General equilibrium
Equilibrium
Two cone equilibrium
Equilibrium rate of interest
Equilibrium price
Computable general equilibrium


 
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