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Q. What do you think about dollarization?
Answer: The respond is almost certainly a bad idea unless in the very short run. It must talk about the loss of seigniorage and the gain in credibility against devaluation which should lead to lower domestic interest rates. Must mention the importance of political will to repair the fundamental economic weaknesses of the country
Special and Differential treatment
which book by adam smith explains the absolute advantage ?
what you do understand by the term effective rate of protection
What does the factor proportions theory posits
The recessionary gap in a country is $1 trillion. The spending multiplier is 5. For every $50 billion borrowed, interest rates increase by 0.1 %. For every 0.1% increase in interes
Q. 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
Describe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the PPP theory. Answer: Expected pric
how to learn trade model
how is exchange rate determined?
Is there is Liquidity in the international monetary system
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