Examine the contention that, in the context of floating exchange rates, the UK’s trade deficit does not represent a problem for the British economy
plus, What is the relationship between the exchange rate and interest rate, I always though higher interest rate = higher exchange rate.
but then I heard that "...Conversely, a fall in the exchange rate will typically boost export demand, and so put upward pressure on both inflation and interest rates."
I'm confused.
Edit: another question: What effects might the decline in union membership be expected to have on the operation of the UK labour market?
Thanks