Fixed exchange rate
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- Fixed exchange rate is an exchange rate that is set by the central bank's willingness to buy and sell the domestic currency for foreign currencies at a predetermined price. (Cf. floating exchange rate.)
Definition
According to Macroeconomics by Mankiw (7th edition),
- Fixed exchange rate. An exchange rate that is set by the central bank's willingness to buy and sell the domestic currency for foreign currencies at a predetermined price. (Cf. floating exchange rate.)
