Why brazil and mexico in the 1990s were able to run trade

Reference no: EM133363835

Questions:

a) Explain why Brazil and Mexico in the 1990s were able to run trade surpluses despite being in a current account deficit situation. Can economic policymakers in Kenya rely on this case study to replicate the current economic situation?
b) Individuals hold their wealth in the form of various assets. Some of these like real estate and consumer durables are real and physical assets; others like bonds, equity, foreign assets, and domestic money, are nominal assets. Viewed in this fashion, money is an asset just like any other. Therefore, we can think of individuals having a demand for money based on the rates of return on money and other alternative assets. Discuss the expression for a demand function for money, clearly enumerating their policy relevance.

Reference no: EM133363835

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