Contractionary Monetary Policy Contractionary monetary policy is defined as macroeconomic tool that is used by the central bank of a country or its finance ministry for purposes of slowing down the economy. This kind of policy is enacted by a government with the aim of reducing the supply of money and ultimately, spending within a

Objectives of the World Trade Organization The World Trade Organization was formed after GATT members signed an agreement in 1994. Unlike GATT, the World Trade Organization was formed after signing an international treaty that was approved by all participating countries. Thus, organization has an international status just like the World Bank and the IMF. However,

Objectives of the World Bank The World Bank also called the International Bank for Reconstruction and Development is a global financial institution that offers financial assistance to member countries while supplementing and promoting private foreign investment as well as promoting a long-range balance in the growth of the international trade. It was established in 1945

Floating Exchange Rate Floating exchange rate is also known as fluctuating exchange rate and it refers to a kind of exchange rate system  through which the currency value is given time to fluctuate in accordance to the market foreign exchange. A currency using floating currency is commonly referred to floating currency and it is contrasted

Sample Essay on Fixed Exchange Rate

Fixed Exchange Rate Fixed exchange rate is at timed known as pegged exchange rate and it’s a kind of regime where the value of the currency is fixed against the currency of another country to another value measure like gold. This kind of currency is used for purposes of stabilizing the value of one currency

Factors Affecting Foreign Exchange Rate Foreign exchange rate is always dynamic and it affects every sector of life. The economic health of a country is influenced by its current exchange rate. Consequently, it is important to understand some of the factors that affect foreign exchange rate. Interest rates When the interest rate of a country

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