Pros and cons of fixed and floating exchange rate systems

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Summarize the pros and cons of fixed and floating exchange rate systems.

Some countries have gone to the extreme of "dollarizing" their economies. What is "dollarization"? What are the advantages/disadvantages of a "dollarized economy"? Provide examples of countries that have done this.

The international financial system has gone through major scrutiny after the 2007-08 Financial Crisis. To that effect, is the IMF necessary today, does is it need to be reformed, and if so, what should its functions include?

Reference no: EM13743133

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