Explain why flexible exchange rates allow a country to have independence for its monetary policy and fixed

Question:

Explain why flexible exchange rates allow a country to have independence for its monetary policy and fixed exchange rates do not.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial Economics Markets and the Firm

ISBN: 978-0618988624

2nd edition

Authors: William Boyes

See More Books

Question Posted: Sep 27, 2014 06:17 AM

See More Questions

Why is it desirable for a country to have an independent central bank?
Is it possible for a country to have a current account deficit at the same time it has a surplus in its balance of payments? Explain your answer, using hypothetical figures for the current and non...
Explain why a developing country with a fixed exchange rate and foreign exchange controls in place (perfectly immobile capital) may find itself dependent on growth in exports, foreign investment, or...
The marketing department for an upscale retail catalog company wants to determine if there are differences in the mean customer purchase amounts across the available purchase sources (Internet,...
What is the six-step critical value approach to hypothesis testing?
The unadjusted trial balance of Tenterfield Tree Specialist, which keeps trees healthy or remove them if they cannot be saved, appears as shown below. Ignore GST. Additional information 1. Expired...
In addition to the size variables, we also have information on several binary variables. The variable URBAN is used to indicate the facility's location. It is one if the facility is located in an...
Bonds A and B are two straight yen-denominated international bonds, with the same maturity of four years and the same YTM of 9 percent. Bond A has an annual coupon of 11 percent and is accordingly...
Write a C program using the fork() system call that calculate the factorial in the child process. The number will be provided from the command line. For example, if 5 is passed as a parameter on the...
Creative auditing does not imply unethical behavior. Creativity and innovation are sometimes employed in conducting an audit. Discuss the reasons for this as well as offer an example, other than the...
Mexico and the United States are the only producers and consumers of a certain type of electronic switch. The demand for and supply of the electronic switch in each country is given below. Suppose...
What are gains from trade? What is the primary benefit of trade? Why is the idea that trade is beneficial counter-intuitive? Discuss.
The oxidation of HSO 3 by O 2 in aqueous solution is a reaction of importance to the processes of acid rain formation and flue gas desulfurization. R.E. Connick et al. (Inorg. Chem. 34, 4543 (1995))...
Define the following terms, indicated in bold in the data: 1. Tariff 2. Subsidy 3. Dumping. EU Stands Up For Spanish Olives Against US Tariffs At WTO The tariffs on Spanish black olives opened a new...
Which of these data are categorical and which are numerical? a. Whether a computer is made by Apple or by another company. b. The size of a computer monitor. c. The speed of a computer processor. d....
Define and give examples of relational needs, identity needs, informational needs, and instrumental needs that communication can help us meet.
Which of these data are categorical and which are numerical? a. Whether a family owns or rents their home. b. A houses square footage. c. The number of bedrooms in a house. d. Whether a house has...
What does it mean to say that communication is dynamic? How can two people in a conversation be both senders and receivers simultaneously?
Add the following decimal numbers after converting each to its BCD code. (a) 74 + 23 (b) 58 + 37 (c) 147 + 380 (d) 385 + 118 (e) 998 + 003 (f) 623 + 599 (g) 555 + 274 (h) 487 + 116
Describe a group you belong or have belonged discuss the stages of group development and suggest how to improve the group effectiveness by using the group development model.
Bernoulli trials - The alternatives are indexed by an \(x\) running from 1 through 15 . - The prior probability in choosing among the 15 alternatives is uniform. - For alternative \(x\), we have...
The following table presents data on sales (S), advertising (A), and price (P): a. Estimate the following demand models: (i) S = + 1A + 2P (ii) S = A1P2 b. Determine whether the estimated values of...
The county assessor is concerned about possible multicollinearity between the size (X1) and total number of rooms (X2) variables. Calculate the correlation coefficient between these two variables and...
The forecasting staff for the Prizer Corporation has developed a model to predict sales of its air-cushioned-ride snowmobiles. The model specifies that sales S vary jointly with disposable personal...
b. Using the inference rules show that S can be inferred if the following logical sentences are believed. 1. P 2. ZvH 3. Hv-P 5. H K 6. K (Sv-P) 7. (Z^-H)K 4. Sv(K) 8. (KA-Q) S Give your answer in...
1) Write a "C" program, which finds only a path (not all the paths) between two given cities according to the directed graph below. This program also calculates the distance between given these two...
How does MariaDB leverage optimizer enhancements such as Cost-Based Optimization (CBO), Index Condition Pushdown (ICP), and Histogram-Based Statistics to improve query execution efficiency and plan...

Explain why flexible exchange rates allow a country to have independence for its monetary policy and fixed

Question:

Step by Step Answer:

The primary way to fix an exchange rate is for an institution to buy and sell th...View the full answer

Managerial Economics Markets and the Firm

Students also viewed these Economics questions