Floating Currencies and Choppy Trade
Article Abstract:
World trade grew by eight and one-half percent from 1963- 1972. Since the introduction of floating exchange rates in 1973 world trade has grown four percent annually. A study by the International Monetary Fund (IMF) reveals an 'indefinite' relationship between floating currencies and trade. The study shows trade is affected by many conditions such as inflation, oil shocks and debt bombs. Two examples of economic conditions affecting trade are given. The principal weakness of floating currencies is 'overshooting,' changing currencies more than necessary to account for cost inflation differences.
Publication Name: Economist
Subject: Economics
ISSN: 0013-0613
Year: 1984
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Floating Joke?
Article Abstract:
Entrepreneur Ronald Goslitski has surprised the world shipping community. His company, Bonna Trading Ireland, will spend $100 billion over twenty years to build a new shipping fleet of revolutionary design. He plans to run ocean going barges to trade with developing countries.
Publication Name: Economist
Subject: Economics
ISSN: 0013-0613
Year: 1983
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