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Q. How were the initial members of EMU chosen? How will new members be admitted? What is the structure of the complex of financial and political institutions that govern economic policy in the euro zone?
Answer: EU countries must persuade:
a) Small inflation rate no more than 1.5 percent over the average of the three EU member states with the lowest inflation.
b) A steady exchange rate within the ERM.
c) Public-sector shortage no much high than 3 percent of its GDP in general.
d) A public debt less than or approaching a reference level of 60 percent of its GDP.
using diagrams, corden''s theory of customs union under conditions of oligopoly and within the existence of external economics of scale.
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Q. Based on the 1997 Crisis and your own experience, what are the main weaknesses of the East Asian economies? Answer: The limitation is little productivity increases most of
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Q. Explain why the distinction between debt and equity finance is useful in analyzing the response of developing countries to unforeseen events such as recession or terms of trade
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