Is the Bipolar View Correct : International Business Finance - Management Assignment

Internal Code : MAs4215

International Business Assignment

Question : Is the Bipolar View Correct? by Stanley Fischer Describe significance of the issue (a topical issue and/or academically importance ......etc). Presentation of a quick summary of the article often gives a strong impression to readers. Since 1973 exchange rates of several major countries, such as the dollar, Australian dollar (from early 1980s) and yen, have been fluctuating in response to supply and demand conditions on the foreign exchange markets. Because of its strong influence on imports and exports of goods and services, the exchange rate is one of the most important prices in the (open) economy. It is also very sensitive price, responding rapidly to any changes, or even anticipated changes, in the economy. That is why exchange rates vary on a daily and even an hourly basis.