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

International economics: Theory & policy, In a day of production, firms in ...

In a day of production, firms in angola can produce 200 liters of oil or 10 kilograms of tungsten. Firms in Namibia can produce 160 liters of oil or 60 kilograms of tungsten. Which

Show the effects of permanent increase in u.s. money supply, By Using the f...

By Using the figures for both the short run and the long run graphs, Demostrate the effects of a permanent increase in the U.S. money supply Economy.  Try to line up your figures t

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

Does foreign aid lead to economic growth?, Question 1: The main challen...

Question 1: The main challenge facing governments in the 21st century revolves around containing and/or downsizing of public spending. Explain why reduced government interventi

International Economics, Brifly explaine the alternative explanation to the...

Brifly explaine the alternative explanation to the theory of international trade

Instruments of trade policy, It is argued that a tarriff may help promote e...

It is argued that a tarriff may help promote employment in a single industry, but is not likely to help employment in general

Calculate the effects of the fall in the relative price, Q. Calculate the ...

Q. Calculate the effects of the fall in the relative price of good 2 on the income of the specific factors capital and land. Answer: For the reason that good 2 uses land, a f

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