Different theories have been developed to explain the determination of rate of exchange. They are: 1. Mint Parity theory 2. Purchasing power parity theory 3. Balance of payments theory 1. Mint Parity Theory: Mint parity theory explains the determination of exchange rate between the two gold standard countries. In a country on gold standard, the […]
Top 3 Theories of Rate of Exchange: With Criticisms | Foreign Exchange | Economics
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