[MUSIC] As we wrap up this section on exchange rates and currency values, I'd like to just remind you of the things that we have established in our discussion. First of all, we've established that currency values in general are determined in free markets, these virtual international currency markets, by the movement of supply and demand. Now sometimes there's some interference with this. But in general, you're finding travel, exports, imports, and flows of capital, investment capital, influencing the bottom line of a currency's value. There are certain indicators that are specially influential and that we can keep an eye on when we're thinking about where a currency's value is going. So we might want to watch interest rates. We might want to watch inflation rates. We might want to watch what's happening to the basic indicators of the economy, or confidence in the economy. Where are expectations going? All of these things can be important. There are also special currencies in the world that have other factors influencing their value. So we might think of the commodity currencies which are influenced heavily by the price of the commodity that this country exports. Or we might think of the safe haven currencies or the hard currencies. The currencies that countries tend to hold either as part of their reserves or against possible changes in their own home economic situation. And so, there's special demand for these currencies, particularly at the worst moments in time. Changes in currency values really effect the economy. We've seen how it's a two edge sword. So the currency falls, some things are good, you get more growth. Some things are bad. You get more inflation and your foreign debt goes up in terms of your domestic currency, and vice versa if the currency rises. Governments for this reason or just because they want more control of their economy, they may intervene to influence the value of the currency. And we have seen how they can do this through interest rates, or by buying and selling the currency with foreign currency. But when governments try to manage the value of the currency, they may find themselves in this trilemma where, if they want to manage the exchange rate, they can't keep both free capital flows and monetary policy autonomy at the same time. And often we have to give one up and we have to maybe make an interest rate decision that we really don't want to for the sake of the domestic economy. We find that in the world there are many different exchange rate systems, going all the way from giving up your currency and using a foreign currency through currency boards to completely free float. We've seen what the big currencies in the world are. The ones that are important in reserves. The ones that are important in transactions. The dollar predominates. And then we've had a look at some different individual currencies and how these factors have influenced their values historically. And I would invite you as we conclude this section to start reading that part of the papers, or your online news source, to see where a currency is going and to search through these different factors, these different determinates, to see if you can figure out why it went where it did. Draw your supply and demand diagram, think it through, and you may get yourself with enough proficiency that you can actually being to predict where currencies will go in the future as you watch those indicators evolve. [MUSIC]