What was the effect on the uk growth rate

Reference no: EM132127600

Question: Several times in the last century, the UK decided to set the value of the £ above its equilibrium value. In terms of the Mundell-Fleming model, this means the value of the currency was set above the point where the NX and NFI curves would intersect in a free market. Yet we know these two magnitudes must be equal on an ex post basis, which means either the NX curve shifted out or the NFI curve shifted in. What is the economic meaning behind these shifts? In either case, what was the effect on the UK growth rate?

Reference no: EM132127600

Questions Cloud

Would you expect further devaluations in the won : In recent years, labor costs in Korea have been rising about 10% faster than in the US. To what extent did this contribute to the devaluation of the won.

Reselling naturals paint products over the internet : How and why could PI face risks under product liability for reselling Naturals paint products over the internet?

Why do you think net exports continued to decline : The US economy was in recession in 1974, 1980, 1982, 1991, and 2001. Based on our earlier discussion of export and import functions.

Risk assessments of running in peachtree marathon next year : What are the risk assessments of running in the Peachtree Marathon next year? Are the risk assessments low, medium, or high?

What was the effect on the uk growth rate : Several times in the last century, the UK decided to set the value of the £ above its equilibrium value. In terms of the Mundell-Fleming model.

Candidate from these two groups and employing organization : What are the benefits to the job candidate from these two groups and the employing organization?

What effect do you think that had on the german economy : Over the next decade, the Dmark appreciated very rapidly relative to the dollar, reaching a value of DM1.8 by 1979.

Explain what happened to the growth rate : In 1961, Charles de Gaulle decided he did not want the French franc to be considered as a second-rate currency, so he chopped two zeros off the value.

What will be the average time between transactions : What is the optimal order quantity? What will be the average time between transactions?

User Account

All Pages