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Q. Describe the crisis in Russia starting from 1989. Explain why?
Answer: Must emphasize lack of tax collection, legal system, corruption, organized crime, inflation, seigniorage financing, and inability to reduction in oil prices, reduce spending, gold prices world's recession and so on. High and indefensible interest rates and continued support from the IMF for fear of collapse of the regime including a possible nuclear threat if Russia decided to sell off its arsenal.
Q. Why Study Fixed Exchange Rates? Answer: Four main reasons: • Managed Floating - Current monetary system is hybrid of floating rate and pure fixed systems fix
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