Principles of Macroeconomics / Unit 13 MAC 1202 short lesson, about 20 seconds
Who Demands and Who Supplies a Currency
Captions available
The idea
Demand for a currency comes from its exporters converting earnings, from foreign visitors, and from foreigners buying its assets. Supply comes from importers, travellers abroad, and residents buying foreign assets.
In practice
Each side has a goods reason, a travel reason and an asset reason.
Where people slip
The asset reasons are the larger, which is why interest rates move rates fast.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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