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

K-l intensity ratio in the production, Q. In autarky, Country P was produci...

Q. In autarky, Country P was producing at point 5. With trade, could its production point be found above or below point 5? Explain why. What must happen in the K/L intensity ratio

Survivor island, Identify and explain the three basic economic question tha...

Identify and explain the three basic economic question that the group of survivors will have to answer everyday

Effects of government deficits on the current account, Q. Discuss the effec...

Q. Discuss the effects of government deficits on the current account. Answer: A difficult and hard issue that during the Reagan administration the creation of twin deficits whe

Consumers and businesses, if the US dollar depreciates dramatically relativ...

if the US dollar depreciates dramatically relative to the Chinese yuan, what effect would this have on consumers and businesses in each country? When is a falling dollar good or ba

Discuss the effects of a change in u.s. expected inflation, Q. To answer th...

Q. To answer the following question, please refer to the figure below. Concentrating only at the lower right quadrant, discuss the effects of a change in U.S. expected inflation.

Economic effect of nationalization, Research about the effects of the Natio...

Research about the effects of the Nationalization in terms of: Economic effect of nationalization -International -What is happening to FDI? How it has affected other inter

Explain the difficulties in naming the new european currency, Q. Expl...

Q. Explain the difficulties in naming the new European currency. Answer: Amongst the reasons: Maintenance the name ECU would be misleading the ECU depreciated sharply ag

What economic forces made french goods, Q. In the year 2000, Americans flo...

Q. In the year 2000, Americans flocked to Paris. What economic forces made French goods seem so cheap to residents of the United States? Answer: One main factor was a sharp f

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