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Q. Show the effects of the reunification of eastern and western Germany in 1990 on both Germany and its neighbouring European countries using the AA - DD framework.
Answer: For Germany this was a period of rumble with high interest rates to fight inflation. Erstwhile European countries like Italy UK, and France were in recession trying to match the high German interest rates to hold their currencies fixed against Germany's thus pushing their economies into deep recession. Other European countries strive to continue the fixed exchange rate in order not to lose the credibility they had built up since 1985. The policy clash among Germany and the other European countries led to a series of fierce speculative harass on the EMS exchange parities starting in September 1992. By August 1993 the EMS was forced to move away to very wide (+- 10 percent) bands which was kept in force until the introduction of the euro in 1993.
Q. Suppose Australia, a land (K)-abundant country and Sri-Lanka, a labor(L)- abundant country both produce labor and land intensive goods with the similar technology. Following t
describe this thery in detail?
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Q. Presumably, since the United States is a large country in many of its international markets, a positive optimum tariff exists for this country. It follows thus that when any l
trade experience of developing countries
Q. It is argued that import substitution is a misguided trade policy if the intent is to show long-term economic growth. Illustrate the reasons underlying this argument. Answe
Q. Why is it that North-South trade in manufactures look to be consistent with the results or expectations generated by the factor-proportions theory of international trade, where
Q. The U.S. is most probably the most open international market among the industrialized countries. What then does the U.S. have to took by joining the WTO? Answer: There ar
Q. Write an essay on the importance of a sound banking system in developing countries. Answer: Students must describe the phenomena of moral hazard as a part of their answer,
Q. It can be argued that Japan's explicit promotion of its microchip industry was an excellent paradigm of successful industrial policy. What criteria could you apply to calculat
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