When do we talk about Trade Weighted Index?? (1 Viewer)

[sk8ie_boi]

So what kind of essay question would they ask for us to talk about the Trade Weighted Index?? ..

Let me rephrase dat ...

In what types of Essay question do we talk about the Trade Weighted Index?

 

[SPYKE_JOE]

exchange rate dats d only one dat is well suited for it

apart from dat it will b in short answer

 

[furrycatau]

TWI is only really needed to be talked about with exchange rate, as it shows how competitive a currency is against a basket of other currencies (the major trading partners of the first country).

 

[sk8ie_boi]

so do I just say "how competitive a currency is against a basket of other currencies (the major trading partners of the first country)"?? .. I mean, but how does it relate to exchange rate?? .. Don't exchange rate essay mainly just consists of appreciation and depreciation, and the causes, and the effects of them? .. and also how the RBA intervene into the FOREX market etc .. I just don't know how to relate TWI into dat essay...

 

[SPYKE_JOE]

demonstarte that echange rates can be bilateral or multilateral (TWI), shows how AU is real eco performance, they can go diff directions, its just a way to write another 1-2paragraghs

 

[furrycatau]

The exchange rate essay may ask to evaluate its performance. The TWI evaluates a currency's performance against the currency's of its major trading partners. Other than that, it may not be relevant, but is an indicator of how the currency is performing against its major trading partners.