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Currency Swaps
If the currency of one country is not convertible, the central banks o f the two countries can exchange their currencies, and the country with the non-convertible currency can use the convertible currency of the other country. These are called currency swaps. The country with the non-convertible currency will later purchase back its own currency using gold or convertible currency.
Measures to control inflation An inflationary situation can effectively be addressed/tackled if the cause is first and foremost identified. Governments have basically three
points and its explanation
Direct control and Moral Suasion Without actually using the above weapons, the central bank can attempt simply to use "moral suasion" to persuade the commercial banks to restr
if Q=120-2p is the equation for demand curve, find the compounding total, marginal and average revenue function
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Borrowing Facilities If a country's currency is not convertible, it can borrow from countries whose currencies are convertible and use the convertible currencies to make its i
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