Given an open economy with high capital mobility

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Question 1:
Analyze the following statement: "Given an open economy with high capital mobility, fiscal policy is strengthened under fixed exchange rates." 
Question 2:
What is international economic policy coordination? Using an example, illustrate the logic of policy coordination. 
Question 3:
Analyze the following statement: "The demand for international reserves tend to increase with the level of world income and trade activity." 
Question 4:
How might debt/equity swaps help solve the international debt problem? Point out the benefits and drawbacks from the viewpoint of the debtor country. Why do you think the debt/equity swap market has remained small over the years? 

Reference no: EM13766818

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