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Protectionist trade policies
Q.1) If you were the finance Minister of Never-Never Land, how would you estimate the long-run exchange rate of your currency? Defend your choice as well as discuss its possible failings.
Q.2) What are the positives and negatives of protectionist trade policies on the part of the federal government? Which policy do you think is best right now?
Q.3) How do changes in interest rates, inflation, productivity, and income affect exchange rates? Is a strong U.S. dollar always good for the U.S. and global economies? Why or why not?
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
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Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?
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