International Currency Exchange Rates & Monetary Policy Considerations

International currency exchange rates are a mechanism for determining the relative value of one currency against another. Rates are set by the forces of supply and demand. Market participants negotiate an agreed value at which the exchange takes place. There is no one centralized market place for exchange rates but the majority of transactions occur on the Interbank market between the participants who negotiate the agreed price. Exchange rates are essential for maintaining a workable framework for all matters of international trade and commerce. This article will examine the role of exchange rates and how they can influence economic and planning decisions.

Currency exchange rates affect foreign trade. International exchange rates allow countries to determine the relative cost of goods for sale. When one countries exchange rate rises or falls against another, it can create a shift in the way trade and commerce is conducted. Manufacturers and exporters price the cost of their goods in their base unit of currency. If the exchange rate appreciates to a considerable extent then it makes the cost of goods more expensive to the foreign purchaser. This can result in a reallocation of resources as demand for the goods shift to a comparatively cheaper supplier.

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Value Oriented Education

There is a profound Indian view about teaching which declares that the first principle of teaching is that nothing can be taught. This paradoxical statement may seem at first sight incomprehensible. But when we look closely into it, we find that it contains a significant guideline regarding the methodology of teaching. It does not prohibit teaching, since it is stated to be the first principle of teaching. It does, however, suggest that the methods of teaching should be such that the learner is enabled to discover by means by his own growth and development all that is intended to be learnt. It points out, in other words, that the role of the teacher should be more of a helper and a guide rather than that of an instructor. This would also mean that the teacher should not impose his views on the learner, but he should evoke within the learner the aspiration to learn and to find -out the truth by his own free exercise of faculties.

The truth behind this role of the teacher is brought out by the contention that nothing can be taught to the mind which is not already concealed as potential knowledge in the inmost being of the learner. One is reminded of the Socratic view that knowledge is innate in our being but it is hidden. Socrates demonstrates in the Platonic dialogue, ‘Meno’, how a good teacher can, without teaching, but by asking suitable questions, bring out to the surface the true knowledge which is already unconsciously present in the learner. As we know, Socrates and Plato distinguished between opinions, on the one hand, and knowledge, on the other. They point out that whereas opinions can be formed on the basis of questionable sense-experiences, knowledge which consists of pure ideas is independent of sense-experience and can be gained by some kind of experience which is akin to remembrance. In other words, according to Socrates and Plato, knowledge is”remembered” by a process of uncovering.

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Fiscal and Monetary Policy, and How They Affect the Economy and You

The key to a smooth running economy is having sound fiscal and monetary policies. We need policies that can be changed over time to better serve our economy as a whole. The United States economy has had its ups and downs, and the economy is definitely in a downward period now, but fiscal and monetary policies can be adjusted to fit what is best for the United States. To really understand the United States economy and understand the issues arising in the news lately, an understanding of the basic concepts behind fiscal and monetary policies is necessary.

Fiscal and Monetary polices are tools that the Federal Reserve Bank, and the government uses to help keep the economy running smoothly. The United States has had periods of hard economic times since the beginning our country’s establishment. The United Stated has had recessions, but our economy has always been able to come back relatively quickly. The Great Depression during the 1930s started as a recession and bank crisis similar to today, but because of an initial lack of government presence the recession evolved to a depression. This was a big turning point of the United States government when they learned that they needed more than just fiscal policies. The United States realized that monetary policies were just as important as fiscal policies. By having both fiscal and monetary policies it would help to prevent another disaster like the Great Depression.

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