Currency Economics: Exchange Rate Policy

Currency is the portion of the national money supply consisting of banknotes and government-issued paper money and coins that can be used as a medium of exchange in the economy. Central banks can sell the domestic currency to lower its value, called devaluation, or buy the currency to raise its value, called revaluation. Altering the exchange rates is commonly regarded as a type of monetary policy. The main advantage of manipulating exchange rates is that changes in exchange rates will have...