{
  "id": "fixed-exchange-rate",
  "name": "Fixed exchange rate (central bank intervention)",
  "unit": "global",
  "unitName": "Unit 4 · The global economy",
  "topic": "Exchange rates",
  "hl": false,
  "description": "To hold a peg, the central bank removes any excess supply or demand at the fixed rate: it buys its own currency (using foreign reserves) when there is downward pressure, and sells its own currency when there is upward pressure.",
  "keywords": [
    "fixed exchange rate",
    "peg",
    "central bank",
    "intervention",
    "foreign currency reserves",
    "devaluation",
    "revaluation"
  ],
  "schemaUrl": "https://graphs.lectere.com/api/v1/templates/fixed-exchange-rate",
  "previewUrl": "https://graphs.lectere.com/thumbs/fixed-exchange-rate.svg",
  "editorUrl": "https://graphs.lectere.com/graph/fixed-exchange-rate/",
  "params": [
    {
      "key": "pressure",
      "label": "Pressure on the currency",
      "default": "down",
      "type": "enum",
      "options": [
        {
          "value": "down",
          "label": "Downward (supply rises) → central bank buys its currency"
        },
        {
          "value": "up",
          "label": "Upward (demand rises) → central bank sells its currency"
        }
      ]
    },
    {
      "key": "intervene",
      "label": "Show central bank intervention",
      "default": true,
      "type": "boolean"
    },
    {
      "key": "free",
      "label": "Show where a free-floating rate would go",
      "default": false,
      "type": "boolean"
    },
    {
      "key": "cur",
      "label": "Currency",
      "default": "£",
      "group": "Currency",
      "type": "string"
    },
    {
      "key": "other",
      "label": "Priced in",
      "default": "US$",
      "group": "Currency",
      "type": "string"
    },
    {
      "key": "shift",
      "label": "Size of the pressure",
      "default": 2,
      "group": "Shape",
      "type": "number",
      "min": 0.8,
      "max": 3.5,
      "step": 0.1
    },
    {
      "key": "dSlope",
      "label": "Demand steepness",
      "default": 0.8,
      "group": "Shape",
      "type": "number",
      "min": 0.3,
      "max": 2.5,
      "step": 0.05
    },
    {
      "key": "sSlope",
      "label": "Supply steepness",
      "default": 0.8,
      "group": "Shape",
      "type": "number",
      "min": 0.3,
      "max": 2.5,
      "step": 0.05
    }
  ],
  "defaults": {
    "pressure": "down",
    "intervene": true,
    "free": false,
    "cur": "£",
    "other": "US$",
    "shift": 2,
    "dSlope": 0.8,
    "sSlope": 0.8
  },
  "panels": [
    {
      "id": "main",
      "title": null,
      "xLabel": "Quantity of £",
      "yLabel": "Price of £ (in US$)",
      "xRange": [
        0,
        10
      ],
      "yRange": [
        0,
        10
      ],
      "axisKeys": {
        "x": "main:x",
        "y": "main:y"
      }
    }
  ],
  "labels": [
    {
      "key": "main:y",
      "default": "Price of £ (in US$)",
      "hint": "Vertical axis",
      "panel": "main"
    },
    {
      "key": "main:x",
      "default": "Quantity of £",
      "hint": "Horizontal axis",
      "panel": "main"
    },
    {
      "key": "main.peg",
      "default": "fixed rate",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.pegt",
      "default": "ER_{fixed}",
      "hint": "Axis mark",
      "panel": "main"
    },
    {
      "key": "main.d1",
      "default": "D_{£1}",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.s1",
      "default": "S_{£1}",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.s2",
      "default": "S_{£2}",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.qd:x",
      "default": "Q_1",
      "hint": "Horizontal-axis value",
      "panel": "main"
    },
    {
      "key": "main.qs:x",
      "default": "Q_2",
      "hint": "Horizontal-axis value",
      "panel": "main"
    },
    {
      "key": "main.gap",
      "default": "excess supply of £",
      "hint": "Arrow / line",
      "panel": "main"
    },
    {
      "key": "main.d3",
      "default": "D_{£2}",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.cb",
      "default": "CB buys £",
      "hint": "Arrow / line",
      "panel": "main"
    }
  ],
  "elements": [
    {
      "key": "main.peg",
      "kind": "curve",
      "label": "fixed rate"
    },
    {
      "key": "main.pegt",
      "kind": "tick",
      "label": "ER_{fixed}"
    },
    {
      "key": "main.d1",
      "kind": "curve",
      "label": "D_{£1}"
    },
    {
      "key": "main.s1",
      "kind": "curve",
      "label": "S_{£1}"
    },
    {
      "key": "main.s2",
      "kind": "curve",
      "label": "S_{£2}"
    },
    {
      "key": "main.shock",
      "kind": "line"
    },
    {
      "key": "main.qd",
      "kind": "point"
    },
    {
      "key": "main.qs",
      "kind": "point"
    },
    {
      "key": "main.gap",
      "kind": "line",
      "label": "excess supply of £"
    },
    {
      "key": "main.d3",
      "kind": "curve",
      "label": "D_{£2}"
    },
    {
      "key": "main.cb",
      "kind": "line",
      "label": "CB buys £"
    }
  ],
  "stats": null,
  "example": {
    "template": "fixed-exchange-rate",
    "params": {
      "pressure": "down",
      "intervene": true,
      "free": false,
      "cur": "£",
      "other": "US$",
      "shift": 2,
      "dSlope": 0.8,
      "sSlope": 0.8
    }
  }
}