Policy tool under fixed exchange rates, International Economics

Assignment Help:

Q. "A monetary policy is not a policy tool under fixed exchange rates." Discuss.

Answer: It is True Under fixed exchange rates domestic asset transactions by the central bank is able to be used to alter the level of foreign reserves but not to influence the state of employment and output.


Related Discussions:- Policy tool under fixed exchange rates

Internal goals of full employment and price stability, Q. How did the inter...

Q. How did the international monetary system created at Bretton Woods in 1944 allow its members to reconcile their external commitments with their internal goals of full employment

Theory of consumer behavior, Q. Write about the assumptions of the theory o...

Q. Write about the assumptions of the theory of consumer behavior based on the cardinal utility approach. 1. Rationality- It is assumed that the consumer is a rational being in

Effects of government deficits on the current account, Q. Discuss the effec...

Q. Discuss the effects of government deficits on the current account. Answer: A difficult and hard issue that during the Reagan administration the creation of twin deficits whe

Comparatitve advantage, what are the limitation of comparative advantage?

what are the limitation of comparative advantage?

Explain how money markets linked foreign exchange market, Q. Explain how th...

Q. Explain how the money markets of two countries are linked through the foreign exchange market. Answer: The financial policy actions by the Fed affect the U.S. interest rate

Gross barter terms of trade, tion..What is the range of gross barter terms ...

tion..What is the range of gross barter terms of trade ?

Effects of ongoing inflation based on the ppp theory, Q. Discuss th...

Q. Discuss the effects of ongoing inflation based on the PPP theory. Answer: Other things equivalent money supply growth at a constant rate eventually results in ongoi

Values of private saving in closed and open economies, Q. Discuss the value...

Q. Discuss the values of private saving in closed and open economies. Answer: In the closed economy private saving Sp is equal to I + (G - T) and in an open economy private sav

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