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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 members of the same currency union trade three times as much with each other as countries that don't share a currency. Even if the euro were to increase trade within the euro zone by 50 percent the positive effect on people's welfare could be immense as another study has shown. Though some challenge the conclusion. Several claims the results wouldn't be duplicated when applied to large countries such as the members of the EU one more study found out that leaving a common currency area as Ireland did has not initiates a reduction in UK - Ireland trade.
Assess the supply and demand of international reserves. Discuss the major determinants of the demand for international reserves: 1.) the monetary value of international transaction
why is international trade important for south africa
Q. Explain Purchasing Power Parity. Answer: PPP () states that the exchange rate between two countries' currencies equals the ratio of the countries' price levels.
Q. Illustrate why Argentina, one of the world's richest countries at the begning of the twentieth century, has become progressively poorer relative to the industrial countries. [
Q. How did the international monetary system influence macroeconomic policy-making and performance during the interwar period (1918 - 1939)? Answer: Governments efficiently sus
Q. "A monetary policy is not a policy tool under fixed exchange rates." Discuss. Answer: It is True Under fixed exchange rates domestic asset transactions by the centr
Q. What explains the sharply divergent long-run growth patterns? Answer: It lies in the political and economic features of developing countries and the way these have
Q. It is probable that trade based on external scale economies can leave a country worse off than it could have been without trade. Illustrate how this could happen. Answer:
Q. What are the main lessons economists learned from the developing country crisis? Answer: 1. select the right exchange rate regime. 2. The central significance of
Q. Even though it is very clear in the context of the Specific Factors model that an expansion of international trade will make losers as well as winners, economists still claim t
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