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Q. Explain the difficulties in naming the new European currency.
Answer: Amongst the reasons: Maintenance the name ECU would be misleading the ECU depreciated sharply against the DM the Euro had bad connotations for Germans and Greeks and names such as Franken and shillings raise objections as well.
Q. Compare currency board to conventional fixed exchange rate? Answer: Currency board mayn't acquire domestic assets and therefore cannot lend currency freely to domesti
Q. Using the GG - LL framework, analyze the effect of an increase in the size and frequency of sudden shifts in the demand for a country's exports. Answer: Such a alter pus
Q. Discuss the problems that the EMU will face in the coming years. Answer: Europe isn't an optimum currency area so asymmetric economic developments within different cou
part of the return on the investment comes from the asset itself and part from the currency of the foreign currency. agree or disagree?
ndian harm sector export
what does the law of reciprocal states about and how does it differ from the theories of smith and ricardo
Q. Suppose the U.S. government (but not Europe) offers a $10 million subsidy? Answer: In this case Airbus would make a decision not to enter the market since it knows Boeing
Q. Explain what a "vehicle currency" is. Why is the U.S. dollar considered a vehicle currency? Answer: A vehicle currency is one specifically widely used to denominate inter
Q. Describe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the PPP theory. Answer: Expected p
Q. Based on the 1997 Crisis and your own experience, what are the main weaknesses of the East Asian economies? Answer: The limitation is little productivity increases most of
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