Why governments sometimes chose to devalue their currencies, International Economics

Assignment Help:

Q. What are the three main reasons why governments sometimes chose to devalue their currencies?

Answer:

1. Permit the government to fight domestic unemployment despite the lack of effective monetary policy.

2. Get better the current account.

3. Raise foreign reserves held by the central bank.


Related Discussions:- Why governments sometimes chose to devalue their currencies

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

International trade and policy, distinguish between net terms of trade and ...

distinguish between net terms of trade and gross terms of trade

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

Domestic investment rates, Q. Explain why, according to Feldstein and Horio...

Q. Explain why, according to Feldstein and Horioka, one should expect that domestic investment rates diverge widely from saving rates. Answer: The decisions of corporations t

Relative income of workers in australia as a result of trade, Q. Using the...

Q. Using the diagram, show what happens to the composition of production (that is quantity of cloth per 1 unit of food) in Australia once trade is established between the two coun

Trade barriers, why do nations impose trade barriers

why do nations impose trade barriers

Balance of payments accounts, Q. "The balance of payments accounts seldom b...

Q. "The balance of payments accounts seldom balance in practice." Discuss. Answer: True the major reasons are due to the fact that data received or collected from different so

#titleADAM SMITH''S TRADE THEORY OF ABSOLUTE ADVANTAGE, Critical evaluation...

Critical evaluation of Adam Smith''s Theory. Outline of its purest form. What is its critism?

One of the problems in the opportunity cost approach and int, essay should ...

essay should be based on one of the problems mentioned into Haberler (1950) with references to the main assumptions of the general equilibrium analysis

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