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Why did the gold standard collapse

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Could someone please answer both of these discussion board questions

Complete Discussion Question 1 using the Discussion Forum.

The interest rate on South Korean government securities with one-year maturity is 4 percent, and the expected inflation rate for the coming year is 2 percent. The interest rate on U.S. government securities with one-year maturity is 7 percent, and the expected rate of inflation is 5 percent. The current spot exchange rate is; Korean won is $1 = W1,200. Forecast the spot echange rate one year from today. Explain the logic of your answer.

Answer Discussion Questions 1 and 4 using the Discussion Forum.

  • Why did the gold standard collapse? Is there a case for returning to some type of gold standard? What is it?
  • Debate the relative merits of fixed and floating exchange rate regimes. From the perspective of an international business, what are the most improtant criteria in a choice between the systems? Which system is the more desirable for an international business

Reference no: EM131845290

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