As soon as one comes to grips with the actual problems of international monetary economics it becomes indispensable to account for the fact that virtually every country (or group of countries forming a monetary union) has its own monetary unit (currency) and that most international trade is not barter trade but is carried out by exchanging goods for one or another currency. Besides, there are international economic transactions of a purely financial character, which, therefore, involve different currencies.
KeywordsExchange Rate Foreign Exchange Real Exchange Rate Foreign Currency Foreign Exchange Market
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