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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.
Q. Describe alternative forms of capital inflow to finance external deficits and explain why these methods were used in different times? Answer: The capital inflows to facili
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Describe the important benefits enjoyed by Indian companies through TRIPs. Elaborate the main objectives of WTO in global economy.
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Q. What are the three main reasons why governments sometimes chose to devalue their currencies? Answer: 1. Permit the government to fight domestic unemployment despite the
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