Floating exchange-rate regime, International Economics

Assignment Help:

Q. Why would you suggest to a government to use a floating exchange-rate regime?

Answer: Floating Exchange Rate is an exchange rate in which central banks don't intervene in foreign exchange market to fix rates. Reasons for Floating Exchange Rates are given below:

1 Monetary policy autonomy.
2 Symmetry.
3 Exchange rates as automatic stabilizers.


Related Discussions:- Floating exchange-rate regime

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

Consumers and businesses, if the US dollar depreciates dramatically relativ...

if the US dollar depreciates dramatically relative to the Chinese yuan, what effect would this have on consumers and businesses in each country? When is a falling dollar good or ba

What are the advantages and disadvantages of trade blocs, Question 1 What ...

Question 1 What are the advantages and disadvantages of trade blocs? Question 2 Identify and explain the various parameters of regional economic integration Question 3 D

Concept of comparative advantage, The Concept of Comparative Advantage is e...

The Concept of Comparative Advantage is explained below: To illustrate the concept of the comparative advantage, we take the instance of two equi-sized equi-endowment countries

Trade, the year of alternative / new trade theoriess

the year of alternative / new trade theoriess

Trade barriers, why do nations impose trade barriers

why do nations impose trade barriers

Distinction between debt and equity instruments, Q. Why is it usefu...

Q. Why is it useful to make a distinction between debt and equity instruments? Answer: Debt instruments such as bank deposits and bonds are repaid regardless of econo

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