Should small open economy adopt a fixed exchange rate regime

Reference no: EM131223169

Consider a small open economy with a wide array of trading partners all operating in different currencies. The economy's business cycles are not well synchronized with any of the world's largest economies and the policymakers in this country have a well-earned reputation for being fiscally prudent and honest.

In your view, should this small open economy adopt a fixed exchange-rate regime?

Reference no: EM131223169

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