How were the initial members of emu chosen, International Economics

Assignment Help:

Q. How were the initial members of EMU chosen? How will new members be admitted? What is the structure of the complex of financial and political institutions that govern economic policy in the euro zone?

Answer: EU countries must persuade:

a) Small inflation rate no more than 1.5 percent over the average of the three EU member states with the lowest inflation.

b) A steady exchange rate within the ERM.

c) Public-sector shortage no much high than 3 percent of its GDP in general.

d) A public debt less than or approaching a reference level of 60 percent of its GDP.


Related Discussions:- How were the initial members of emu chosen

Relationship between ppp and the law of one price, Q. Discuss the r...

Q. Discuss the relationship between PPP and the Law of One Price. Answer: The law of one price is applies to individual commodities while Purchasing Power Parity appli

What is the purpose of the following figure, Q. What is the purpose...

Q. What is the purpose of the following figure? Answer: The use of the figure is to show the inflation convergence within the six original EMS members. The f

Comparatitve advantage, what are the limitation of comparative advantage?

what are the limitation of comparative advantage?

Discuss studies based on the interest parity conditions, Q. Discuss ...

Q. Discuss studies based on the interest parity conditions. Answer: Generally the formula doesn't hold and isn't a good predictor of future devaluations. Even poorer it

K-l intensity ratio in the production, Q. In autarky, Country P was produci...

Q. In autarky, Country P was producing at point 5. With trade, could its production point be found above or below point 5? Explain why. What must happen in the K/L intensity ratio

Explain the money markets of two countries, Q. Explain the followin...

Q. Explain the following figure: Answer : The figure explicate how the money markets of two countries are linked through the foreign exchange market. The financial pol

Effect of a permanent increase in the money supply, Q. Explain the followin...

Q. Explain the following figure: Answer: The figure depict the effect of a permanent increase in the money supply starting from full employment equilibrium. Subsequent to the i

What do you think about international, Q. What do you think about int...

Q. What do you think about international? Answer: A prescribed procedure whereby a country is able to seek international legal authorization to temporarily stop paying i

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