Theoretical-Practical Arguments Regarding the Selection of the Optimal Method of Determining the Exchange Rate

Abstract

The exchange rate is one of the indicators of the state of the national economy. It reflects not only confidence in the national currency, but also the development of the country's economy. A state with a strong economy is usually characterized by a stable currency, and strong fluctuations in the exchange rate and its constant weakening usually indicate the instability of the economy or its poor development. The relevance of the study is determined by the fact that today there are many theories and methods of determining the exchange rate. In this study we will analyze these theories and methods in detail and consider whether their application in practice is possible. CZU: 339.743(478); JEL: F31, F37, E52