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Q. Based on the case study, answer the following question: Can currency boards make low-inflation policies credible?
Answer: Currency boards have the power to bring in anti-inflation credibility from the country to which the domestic currency is hook. Currency boards usually mayn't acquire government debt however it can discourage fiscal deficits leading to reduce a major cause of inflation and devaluation. In command for a currency board to be successful is by increasing the banking sector and that is able to get the government under pressure to abandon the currency board. Additionally if the markets anticipate that the government is leaving the currency board the country mayn't benefit from the potential of a currency board.
Q. What are the main functions of money? Answer: Money serves generally three important functions that are a unit of account, a medium of exchange and a store of value.
Describe the strategies of globalization and regionalization and explain when each strategy can be used effectively. Give examples of successful companies that have followed each
International Capital Mobility is explained below: The case for the international capital mobility was most evidently articulated by MacDougal in 1960. He presented a framework
the Trade and the Economy
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Q. Contrast the crisis in Poland and Russia. Explain why the Polish economy has done better? Answer: With the end of the 1990s a handful of East European economies including
The Concept of Comparative Advantage is explained below: To illustrate the concept of the comparative advantage, we take the instance of two equi-sized equi-endowment countries
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