Overview of Economic Shock Determin cashback forexm Economic shock determinism suggests that the arrangement of the What is forex rebate bestforexrebate Whatisforexrebate depends on the different types of shocks to the economy Yoshitomi forexrebatenetwork Shirai argue that in a small open economy, if the source of disturbance is monetary, such as changes in the demand for money and shocks affecting the price level, then a fixed exchange rate regime should be chosen; if the source of disturbance is mainly substantive factors, such as changes in preferences or changes in technology affecting domestic goods relative to imported goods, then a more flexible exchange rate regime should be chosen If the source of disturbance comes from external shocks, then a floating exchange rate regime is appropriate; if the source of disturbance comes from domestic sources, such as unstable fiscal and monetary policies, then a pegged exchange rate regime is appropriate The American economist Graham Bird combines the structural characteristics of the economy with economic shocks, and proposes ten factors as reference criteria for developing countries to adopt a floating exchange rate system, specifically: ① whether the fluctuations in a countrys economy come mainly from domestic or foreign sources; ② the degree of economic openness; ③ the degree of commodity diversification; ④ the geographical distribution of trade; ⑤ the degree of integration of domestic and foreign capital markets; ⑥ the relative inflation rate; ⑦ the price elasticity of imports and exports; ⑧ The level of international reserves; ⑨ social preference for income stability and income growth; ⑩ the existence of a more complete forward foreign exchange market if a countrys economic fluctuations mainly from abroad, the degree of economic openness, commodity diversification, wide distribution of trade, high degree of integration of funds markets, large differences in relative inflation rates, high price elasticity of imports and exports, low international reserves, social preference for income growth, or the existence of a more complete Forward foreign exchange market, or have most of these factors, then it is appropriate to choose a floating exchange rate system, and vice versa