Fixed exchange rates, International Economics

Assignment Help:

Q. "Fixed exchange rates are not even an option for most countries." Discuss.

Answer: Durable fixed exchange rate arrangements may possibly not even be possible unless countries are willing to maintain strict controls over capital movements as China does or else at the other extreme move to a shared single currency with their monetary partners like as in Europe. Still a country following prudent fiscal and monetary policies isn't safe from speculative attacks on its fixed exchange rate.


Related Discussions:- Fixed exchange rates

report on internationally competing firms , Investment analysis report on ...

Investment analysis report on internationally competing firms Students will be organized randomly into small groups (typically 6), and will prepare an investment analysis of c

Relationship between ppp and the law of one price, Q. Discuss the r...

Q. Discuss the relationship between PPP and the Law of One Price. Answer: The law of one price is applies to individual commodities while Purchasing Power Parity appli

Introduction-modelling, As the world seeks to find alternative means to pro...

As the world seeks to find alternative means to produce clean power, fuel cells emerge as a promising source of power generation. Depending on their type, fuel cells can be utilize

What is the policy of sterilization, Q. What is the policy of steri...

Q. What is the policy of sterilization? Give an example. Answer: • Untainted foreign exchange intervention - policy by which central banks perform equal foreign

Welfare effects of tariff, Welfare Effects of Tariff can be understood as f...

Welfare Effects of Tariff can be understood as follows: It is important to understand what the welfare effects for the tariff are. While a tariff might seem desirable because i

Financial resources, Financial Resources: The first investor is the Fitaih...

Financial Resources: The first investor is the Fitaihi Company under the leadership and technical and medical assistance of Dr. Walid Fitaihi, who was then joined by other investo

What if the taste bias favored the imported good, Q. One of the usually us...

Q. One of the usually used assumptions in deriving the Heckscher-Ohlin model is that tastes are homothetic, or that if the per capita incomes were the similar in two countries, th

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