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Q. Present the case for floating exchange rates.
Answer:
1. Monetary policy autonomy
Governments would able to use financial policy to reach internal and external balance. No country possible forced to import inflation and deflation from abroad.
2.Symmetry
The United States would no longer is able to set world monetary conditions all by itself. The United States would have the similar opportunity the same as other countries to influence its exchange rate against foreign currencies.
3. Exchange rates like automatic stabilizers.
The agonizing and long periods of speculation preceding exchange rate realignments wouldn't take place under floating.
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Q. What factors lie behind capital inflows to the developing world? Answer: Several developing countries have received a lot of capital inflows that lead them to an
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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
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