Why study fixed exchange rates, International Economics

Assignment Help:

Q. Why Study Fixed Exchange Rates?

Answer: Four main reasons:

• Managed Floating - Current monetary system is hybrid of floating rate and pure fixed systems fixed exchange rates give insight to effects of foreign exchange intervention under floating rates.

• Regional Currency Arrangements - Exchange rate unions subsist where member nations fix mutual exchange rates.

• Developing Countries and Countries in Transition- Almost half the world connect in currency pegging.

• Lessons of Past - Fixed exchange rates were the standard in several historical periods many economists propose resurrection of some fixed rate system.


Related Discussions:- Why study fixed exchange rates

How the timing of a balance of payment crisis is determined, Q. Explain how...

Q. Explain how the timing of a balance of payment crisis is determined.  Be careful to state all assumptions.   Answer:  The assumptions of the model are: Prices are el

Protectionism, what are the theories supporting protectionism

what are the theories supporting protectionism

Balance of payments deficits, Q. Refute the claim by mercantilists who clai...

Q. Refute the claim by mercantilists who claimed that without severe restrictions on international trade and payments, a country might find itself impoverished and without an adequ

Line distinguishing between external and internal goals, Q. "The line disti...

Q. "The line distinguishing between external and internal goals can be fuzzy."  Discuss. Answer: True For instance employment target for export industries when export growth m

Pestel framework, The PESTEL is a strategic development technique that prov...

The PESTEL is a strategic development technique that provides a helpful framework for analyzing the environmental pressures on an organization (Rogers, 1999). PESTEL framew

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