I am an engineering student with a deep interest in economics. I have been trying to understand how money works and more specifically what determines exchange rates.
Consider that for some reason,The US has decided to pump in billions of dollars into the Indian Economy. starting from the basics, could you explain how this would alter the dynamics of the foreign exchange unltimately causing the exch rate to rate?
for specifically, could you sugest some good reference which shall give me a complete idea of the subject of foreign exchange, banking etc?
thank you
Answer Thank you for your question. You may want to check out a beginners textbook on macroeconomics. I assume that being an engineering major you math and calculus are strong. Thus you may be bolder and tackle Patinkin's classic on Money and Banking. Great reading and very clearly explained. Good Luck.
