Depreciation is actions taken by european central bank

Assignment Help Business Economics

Reference no: EM13837000

The euro has been depreciating against the $ for the past several months. The proximate cause of this depreciation is actions taken by the European Central Bank (ECB).

What were those actions?

Why did the ECB take those actions?

Were the actions intended to move the European AS curve or the AD curve? In what direction?

Suppose you are an American who had been planning to vacation in Italy this summer. You were planning to do this before the euro started to depreciate. Should you change your plans now? Why or why not?

From the point of view of the US, how will depreciation of the euro affect net exports (X-M), the AS curve and the AD curve?

Holding everything else constant, did the depreciation of the euro make the Federal Open Markets Committee more likely or less likely to raise the federal funds rate in the next few months? Or is it irrelevant for this decision? Explain your answer.

Reference no: EM13837000

Questions Cloud

Assumed that the costs of acquiring an education : In the typical signaling model, it is assumed that the costs of acquiring an education are higher for low-ability than for high-ability workers. Suppose that the government steps in and subsidizes low-ability workers for the higher costs they incur i..

What would the neo-classical policy prescription : Around 2000, the dotcom bubble in the stock market burst and the US entered a recession. What would the neo-classical policy prescription have been for the US government and the Federal Reserve to do about this recession? How would this have operated..

Estimating the natural rate of unemployment : Economists have devoted a lot of effort to estimating the natural rate of unemployment in particular countries at particular times. Is this a useless academic exercise, or are there good reasons to want to know this number? Explain.

Independence referendum had passed : Suppose (contrary to fact) that the Scottish independence referendum had passed, Scotland had become independent, and you became its finance minister. Your first order of business is to recommend a currency for Scotland.

Depreciation is actions taken by european central bank : The euro has been depreciating against the $ for the past several months. The proximate cause of this depreciation is actions taken by the European Central Bank (ECB). What were those actions? Why did the ECB take those actions?

What proportion of investment is private saving : Show that the value of GDP at the point of spending balance is 6,000 billion. What proportion of investment is private saving? Government saving? Saving by the rest of the world?

Investment-government spending exogenous-tax multiplier : Consider the following simple model with investment and government spending exogenous: Derive the change in Y associated with an increase in taxes T. Show the results graphically and algebraically. What is the tax multiplier?

If consumers perceive several goods to be homogeneous : If consumers perceive several goods to be homogeneous, they believe the goods to be,

Check to another individual money supply will not be changed : Free trade will affect a country's employment in different industries. When one individual writes a check to another individual the money supply will not be changed. A bank's required reserves are the fraction of deposits they are required by law to ..

User Account

All Pages