What factors are not important in determining exchange rate fluctuations in the Canadian dollar in the long run?

Question

Quizplus · Accepted Answer

Speculating in currency markets is generally considered a short-term factor affecting exchange rates rather than a long-term determinant. Long-term exchange rate fluctuations are more influenced by fundamental economic factors such as relative price levels, productivity growth, and trade preferences, rather than short-term speculation.

What Factors Are Not Important in Determining Exchange Rate Fluctuations