How were the initial members of emu chosen, International Economics

Assignment Help:

Q. How were the initial members of EMU chosen? How will new members be admitted? What is the structure of the complex of financial and political institutions that govern economic policy in the euro zone?

Answer: EU countries must persuade:

a) Small inflation rate no more than 1.5 percent over the average of the three EU member states with the lowest inflation.

b) A steady exchange rate within the ERM.

c) Public-sector shortage no much high than 3 percent of its GDP in general.

d) A public debt less than or approaching a reference level of 60 percent of its GDP.


Related Discussions:- How were the initial members of emu chosen

Development by stabilisation & reform-lower income countries, Development t...

Development through stabilisation and reform can be understood as follows     The reasoning here was that the trade and resource transfer could not, by themselves, lift L

Fiscal policies to both internal and external balances, Q. Using the II - X...

Q. Using the II - XX framework, show using a figure that fiscal policies by themselves cannot bring the economy to both internal and external balances. Answer: Starting at poi

How can long-run values in the real exchange rate change, Q. How can ...

Q. How can long-run values in the real exchange rate change? Answer: A elevate in world relative demand for U.S output origins a long-run real appreciation of the dollar

Why do we observe the leontief paradox, Q. Why do we observe the Leontief ...

Q. Why do we observe the Leontief paradox? Answer: There are several possible answers that they may be categorized into three groups. One would argue that the theory or model

#the classical theory of international trade title.., Critically evaluate t...

Critically evaluate the classical theory of international trade

Relative capital abundance, Q . Consider that the relative capital abundanc...

Q . Consider that the relative capital abundance of Australia was so much greater than that of Sri-Lanka, that we would have to locate Australia far to the right on the K/L axis.

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