What is the purpose of capital controls

Assignment Help Microeconomics
Reference no: EM132172652

Question: 1. Why do nations use a crawling-peg exchange rate system?

2. What is the purpose of capital controls?

3. What factors contribute to currency crises?

4. Why do small nations adopt currency baskets against which to peg their exchange rates?

5. What advantage does the SDR offer to small nations seeking to peg their exchange rates?

6. Present the case for and the case against a system of floating exchange rates.

7. What techniques can a central bank use to stabilize the exchange value of its currency?

8. What is the purpose of a currency devaluation? What about a currency revaluation?

Reference no: EM132172652

Questions Cloud

What are trade remedy laws : What are trade remedy laws? How do they attempt to protect U.S. firms from unfairly (fairly) traded goods? What is intellectual property?
What is meant by the most-favored-nation clause : What is meant by the most-favored-nation clause, and how does it relate to the tariff policies of the United States? GATT and its successor.
What does the balance of international indebtedness measure : What does the balance of international indebtedness measure? How does this statement differ from the balance of payments?
Why does the balance-of-payments statement balance : Why does the balance-of-payments statement "balance"? From a functional viewpoint, a nation's balance of payments can be grouped into several categories.
What is the purpose of capital controls : What is the purpose of capital controls? Why do small nations adopt currency baskets against which to peg their exchange rates?
How do managed floating exchange rates operate : How do managed floating exchange rates operate? Why were they adopted by the industrialized nations in 1973? Why do some developing countries adopt currency?
What would be the likely effects of export restraints : Why did the u.s. government in 1982 provide import quotas as an aid to domestic sugar producers? Which tends to result in a greater welfare loss for the home.
What would be the likely benefits and costs of such a policy : In 1980, the u.s. auto industry proposed that import quotas be imposed on foreign-produced cars sold in the United States.
Differentiate among sporadict and predatory dumping : Differentiate among sporadic, persistent, and predatory dumping. A subsidy may provide import-competing producers the same degree of protection as tariffs.

Reviews

Write a Review

Microeconomics Questions & Answers

  What does the given imply for the size of total surplus

New York City has a long-standing policy of controlling rents in certain parts of the city-in essence. What does this imply for the size of total surplus?

  Complete book appraisal about any one of the suggested books

Students are to complete a typed as well double spaced book appraisal about any one of the suggested books in the books suggestion list.

  Absolute convergence and conditional convergence

Explain the differences among absolute convergence, conditional convergence, and a reduction in the dispersion of real per capita income across groups.

  Choose the industry recognize the organization in that

you will apply important microeconomics concepts toward the competitive strategies of an organization that operates in

  Compute the rate of return on the investment

Question - Compute the rate of return on the investment characterized by the following cash flow

  Explain the effect of the wage-channel

Do workers choose to work more because wages are temporarily high and do workers choose to work less because wages are temporarily low?

  Question based on marginal revenue

In short run, assume that all the costs [except film rental and concessions] at a theater are fixed, and that each theater can seat five hundred people per day, no more.

  What is the relationship between art and culture?

What is the relationship between art and culture?

  What is the nominal interest rate on this loan

Suppose you borrowed $200 one year ago and must now repay $210. The inflation rate over the year was 7 percent. What is the nominal interest rate on this loan

  Which technique better aligns to the workplace and why

One critical aspect of the skills that managers lack is planning. You have been asked by your manager to conduct a preliminary search of recommending the two most common types of contemporary planning techniques-project management and scenario pla..

  Should ibrahim use the puts as a hedge

Should Ibrahim use the puts as a hedge? Explain. Under what conditions should he not use puts as a hedge?

  Explain long-run adjustment that will take place in industry

Suppose that the market for the services of hookah bars is in long-run equilibrium. (1) more cities end regulations that had generated fixed costs for hookah bars, and (2) many nonstudent adults discover previously unknown preferences for the serv..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd