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Assignment: Analyze Alternative Exchange Rate Regimes
There are several arguments for and against the alternative exchange rate regimes. Prepare a 2- to 4-page paper presenting both sides of the argument. In your paper:
• List and explain the advantages of the flexible exchange rate regime.• Criticize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime.• Refute the above criticism from the viewpoint of the proponents of the flexible exchange rate regime.• Discuss the impact the increased volatility in interest and foreign exchange rates has on global institutions.
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