# Macro Notes 8: Foreign Exchange

At the end of this set of notes, you should be able to explain:

1. Introduction
2. Exchange rate determination in a free market
3. Factors affecting the exchange rate
4. Flexible exchange rate system
5. Fixed exchange rate system
6. Managed float exchange rate system
7. Advantages of flexible over fixed exchange rate system
8. Disadvantages of flexible over fixed exchange rate system
9. Internal economic impact of a change in exchange rate
10. External economic impact of a change in exchange rate