2 questions (1 Viewer)

[_JoHNnY_]

is there a difference between PROTECTIONIST policies and PROTECTIONALIST policies? if so what is it?

also, what is the main difference between a fixed exchange rate and a managed one? is it that the managed is kept within a targeted band?

thanx...goodluck

 

[sunjet]

Fixed - It's fixed. RBA Buy or Sell $A to keep it at that value.
Managed - RBA intervenes in Forex market. Peg the value at 9am and last the day but it would drift away.

 

[Jago]

The main difference is that a fixed exchange rate is determined by the govt/RBA, whereas a managed exchange rate is where the government intervenes in the market to influence the exchange rate or set the rate for short periods such as a day or week.

 

[_JoHNnY_]

ok thanx...