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Questions tagged [in equilibrium]

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JejuSunshineSoul JejuSunshineSoul Wed Aug 28 2024 | 6 answers 1849

When a foreign exchange market is in equilibrium?

Can you elaborate on what it means when a foreign exchange market is in equilibrium? Is it a state where the supply and demand for a particular currency are perfectly balanced, resulting in a stable exchange rate? How does this equilibrium come about, and what factors can disrupt it? Additionally, what are the implications of a foreign exchange market being in or out of equilibrium for global trade and finance?

When a foreign exchange market is in equilibrium?

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