Goal of a single shared currency, International Economics

Assignment Help:

Q. Why did the EU countries move away from the EMS toward the goal of a single shared currency?

Answer:

1. To produce a superior degree of European market integration by removing the threat of EMS currency realignments.

2. To decrease German dominance of the EMS monetary policy.

3. Given the shift to complete freedom of capital movements within the EU fixed however adjustable currency parities may possibly lead to ferociously speculative attacks as in 1992 - 1993.

4. To guarantee the political constancy of Europe.


Related Discussions:- Goal of a single shared currency

Economics, describe the U.S role in the world economy

describe the U.S role in the world economy

How two countries foreign exchange market linked together, Explain how the ...

Explain how the money markets of two countries are linked through the foreign exchange market. Answer:  The financial policy actions by the Fed affect the U.S. interest rate al

Concept of comparative advantage, The Concept of Comparative Advantage is e...

The Concept of Comparative Advantage is explained below: To illustrate the concept of the comparative advantage, we take the instance of two equi-sized equi-endowment countries

How much trade do currency unions create, Q. How much trade do curren...

Q. How much trade do currency unions create? Answer: The major result is that currency unions promote trade. One study originate that on average two countries that are

#Tariff quota, Ask question #Effects of Tariff quota#

Ask question #Effects of Tariff quota#

International monetary system during the post-world war, Q. How did the int...

Q. How did the international monetary system influence macroeconomic policy-making and performance during the post-World War II years during which exchange rates were fixed under t

Neo - classical models explanation of the determinants, Q. If a scale econ...

Q. If a scale economy is the dominant technological factor establishing or defining comparative advantage, then the underlying facts explaining why a particular country dominates

Discuss differences between absolute ppp and relative ppp, Discuss the diff...

Discuss the differences between Absolute PPP and Relative PPP . Answer:  Absolute Purchasing Power Parity (PPP) states that the exchange rate between two currencies equals the

Factors affecting the demand for foreign currency, Q. What are the factors...

Q. What are the factors affecting the demand for foreign currency? Answer: Three factors that affect the demand for foreign currency are risk, expected return, and liquidity.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd