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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.
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
Explanation with critical appraisal
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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
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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
The PESTEL is a strategic development technique that provides a helpful framework for analyzing the environmental pressures on an organization (Rogers, 1999). PESTEL framew
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Why we Devising an International Monetary System
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