High capital mobility is forcing emerging market nations to choose between free-floating regimes and currency board or dollarization regimes. What are the main outcomes of each of these regimes from the perspective of emerging market nations?
Answer to relevant QuestionsHow did the Argentine currency board function from 1991 to January 2002, and why did it collapse? Where in the balance of payments accounts do the flows of “laundered” money by drug dealers and international terrorist organizations appear? What is the difference between a direct foreign investment and a portfolio foreign investment? Give an example of each. Which type of investment is a multinational industrial company more likely to make? What are the three primary methods that might be used individually or in combination to resolve the debt crisis? What are the three major functions of the foreign exchange market?
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