International Economics
Download 7.1 Mb. Pdf ko'rish
|
Dominick-Salvatore-International-Economics
8.
Indicate the benefits and costs that are likely to arise for the EU member countries from the estab- lishment of a single currency. 9. Indicate the difference among (a) a fixed exchange rate system, (b) a currency board arrangement, and (c) dollarization. 10. Starting with the exchange rate of R = $2/ ¤ 1, draw a figure showing the exchange rate under a crawling peg system with the nation appreciating its currency by 1 percent at the end of each month for three months, with an allowed band of fluctuation of 1 percent above and below the par value. 11. Starting with the solid line (curve A) showing the fluctuation in the exchange rate over the business cycle in the absence of speculation in Figure 20.2, draw a figure showing the fluctua- tion in the exchange rate over the cycle (under a managed floating exchange rate system and no speculation) with a policy of leaning against the wind that eliminates about one-half of the fluctua- tion in the exchange rate. 12. A flexible exchange rate system will insulate the economy from international disturbance and there- fore eliminate the need for international policy coordination. True or false? Explain. 13. Explain how game theory can be used to examine international macroeconomic policy coordination. 14. Explain why each nation might pursue a loose fiscal policy and a tight monetary policy in the absence of international policy coordination but the opposite with policy coordination. 15. sfasfd (a) Review the experience with international macroeconomic policy coordination among the leading industrial countries during the past two decades. (b) What conclusion can you reach regarding the possibility of much greater international macro- economic policy coordination among the leading industrial countries of the world today? APPENDIX A20.1 Exchange Rate Arrangements In this appendix, we present the exchange rate arrangements, as of April 30, 2011, of the 187 countries and three territories that are members of the International Monetary Fund. This is shown in Table 20.6 on the following three pages. The table shows that the present system exhibits a large degree of freedom for each nation to choose the exchange regime that best suits it. As a result, some have referred to the present system as a nonsystem. A nation may also change its exchange regime as long as the change is not disruptive to its trade partners and to the world economy. Download 7.1 Mb. Do'stlaringiz bilan baham: |
Ma'lumotlar bazasi mualliflik huquqi bilan himoyalangan ©fayllar.org 2024
ma'muriyatiga murojaat qiling
ma'muriyatiga murojaat qiling