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Economics

Fixed, Flexible and Managed Exchange Rates

Since 1983 the Australian dollar has been floated. However, it has transitioned over time from initially being fixed to the British pound, then fixed to the US dollar, before maintaining a managed peg, and then finally floating the dollar.

Watch the video below to learn about the difference between fixed and flexible (floating) exchange rates in HSC Economics:

 
Managed exchange rates incorporate elements of both fixed and floating exchange rates, which can be seen in the video below: