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Q. What do you think about dollarization?
Answer: The respond is almost certainly a bad idea unless in the very short run. It must talk about the loss of seigniorage and the gain in credibility against devaluation which should lead to lower domestic interest rates. Must mention the importance of political will to repair the fundamental economic weaknesses of the country
The first African Economists Congress organized by the African Union concentrated on the creation of a monetary union and the introduction of single currency in Africa. (a) Ref
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
Explanations of FDI and the MNC
explain the law of reciprocal demand trade theory of marshall
Q. Use the II - XX framework in order to show graphically how inflation can be imported from abroad unless exchange rates are adjusted. Answer: Suppose that the home economy is
explained with example
Q. Explain how the timing of a balance of payment crisis is determined. Be careful to state all assumptions. Answer: The assumptions of the model are: Prices are el
In the Ricardian analysis, why does each trading partner have an incentive to produce at an endpoint of its production-possibility frontier? Why are prices of factors of production
Explain Ohlin theory of International trade
Q. Suppose Australia, a land (K)-abundant country and Sri-Lanka, a labor(L)- abundant country both produce labor and land intensive goods with the similar technology. Following t
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