Fixed-exchange rate area, International Economics

Assignment Help:

Q. "The costs and benefits for a country from joining a fixed-exchange rate area such as the EMS depend on how well-integrated its economy is with those of its potential partners." Discuss.

Answer: Generally true that this is the theory of optimum currency area. Mundell was honoured the Nobel Prize for developing the theory.


Related Discussions:- Fixed-exchange rate area

What effect do non-tradable goods have on ppp, What effect do non-tradable ...

What effect do non-tradable goods have on PPP? Answer:  The consequence is quite substantial.  In 1997 the production of non-tradable goods accounted for about 55% of U.S GNP.

Dd-aa schedule, Q. Imagine that the economy is at a point on the DD-AA sche...

Q. Imagine that the economy is at a point on the DD-AA schedule that is above both AA and DD and where both the output and asset markets are out of equilibrium. Explain what will h

Compare currency board to conventional fixed exchange rate, Q. Compar...

Q. Compare currency board to conventional fixed exchange rate? Answer: Currency board mayn't acquire domestic assets and therefore cannot lend currency freely to domesti

Krone free to float against the non-euro currencies, Q. Illustrate why when...

Q. Illustrate why when Norway unilaterally fixes its exchange rate against the euro but leaves the krone free to float against the non-euro currencies, it is unable to keep at leas

Free trade and protectionism, why is international trade important for sout...

why is international trade important for south Africa?.

Haberlor''s opportunity cost theory in hindi, please explane haberlor''s op...

please explane haberlor''s opportunity cost theory in hindi in simple language

#title opportunity cost theory, review the general equilibrium conditions u...

review the general equilibrium conditions under autarky and given free trade using the opportunity cost theory of trade

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd