Fixed exchange rates, International Economics

Assignment Help:

Q. "Fixed exchange rates are not even an option for most countries." Discuss.

Answer: Durable fixed exchange rate arrangements may possibly not even be possible unless countries are willing to maintain strict controls over capital movements as China does or else at the other extreme move to a shared single currency with their monetary partners like as in Europe. Still a country following prudent fiscal and monetary policies isn't safe from speculative attacks on its fixed exchange rate.


Related Discussions:- Fixed exchange rates

Explain why despite enormous natural resources, Q. Explain why despite enor...

Q. Explain why despite enormous natural resources, much of Latin America's population remains in poverty and the region has been repeatedly experiencing financial crises. Answe

What if the taste bias favored the imported good, Q. One of the usually us...

Q. One of the usually used assumptions in deriving the Heckscher-Ohlin model is that tastes are homothetic, or that if the per capita incomes were the similar in two countries, th

British economy, how is it the economy during the two wars and till 20 th

how is it the economy during the two wars and till 20 th

Firms compete only through diversifying their prices, It is often argued th...

It is often argued that firms compete only through diversifying their prices. Do you agree with this view? Justify your answer using examples / case studies form the Greek and/or t

Globalization, Globalization The procedure of interlinking financial ma...

Globalization The procedure of interlinking financial markets in various countries into a common, world pool of funds to be accessed by both between borrowers  and lenders. It

Absolute advantage, Why Adam Smith theory cannot be applicable?

Why Adam Smith theory cannot be applicable?

Trading, suppose that France has a trade surplus with the united kingdom, w...

suppose that France has a trade surplus with the united kingdom, what would you expect to happen to price,wages, and commodity price in France? why? what would happen to the terms

#Tariff quota, Ask question #Effects of Tariff quota#

Ask question #Effects of Tariff quota#

Alternative theories of international trade, what are the alternative theo...

what are the alternative theories of international trade?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd