Float-rate regime against non-euro currencies, International Economics

Q. Explain why after, say Norway unilaterally pegs the krone to the euro, domestic money market disturbances will no longer affect domestic output despite the continuation of float-rate regime against non-euro currencies.

Answer: Because Norway's interest rate should equal the euro interest rate any pure shifts in the AA curve will result in immediate reserve outflows or inflows that leave Norway's interest rate unchanged.

Posted Date: 6/29/2013 3:06:15 AM | Location : United States







Related Discussions:- Float-rate regime against non-euro currencies, Assignment Help, Ask Question on Float-rate regime against non-euro currencies, Get Answer, Expert's Help, Float-rate regime against non-euro currencies Discussions

Write discussion on Float-rate regime against non-euro currencies
Your posts are moderated
Related Questions
Q. It can be argued that Japan's explicit promotion of its microchip industry was an excellent paradigm of successful industrial policy. What criteria could you apply to calculat


Q. "Under floating rates, the economy is more vulnerable to shocks coming from the domestic money market." Discuss. Answer: It is true statement, under floating rates an incr

You will submit a report that shows your investigation of your focus question.  Your report must be 1500 - 2000 words in length written for the journal Health Australia, a journal

Q. Analyze the effects of an increase in the European money supply on the dollar/euro exchange rate. Answer: The major points are: A raise in the European money supply will re

ln?(?FDI?_t )=ln??(C)+? ln?(?CNGDP?_t )+ßln?(?GDP?_t ?)+a ln?(DIST)+fCAFTA+?_(1 ) ln?(?EXPORT?_t )+?_2 ln?(?GDPM?_t )+?_3 ln?(?CPI?_t )+?_4 ln?(?GDPA?_t )+e

Q. Explain why the FDIC is following a "too-big-to-fail" policy of fully protecting all depositors at the largest banks. Answer: It is a tricky question the FDIC does that even

critically examine the effects of tariffs on the level of employment and income distribution.


Present and explain the Fundamental Equation of the Monetary Approach. Answer:  Suppose E $ /E = P US /P E and that domestic price levels depend on domestic money demands and