1. If you were elected to choose between a fixed, freely
floating, or a managed float...
1. If you were elected to choose between a fixed, freely
floating, or a managed float exchange rate system, which would you
choose for the United States? Why? Explain and justify your
answer.
If you were elected to choose between a fixed, freely floating or dirty floating exchange rate system, which would you choose for your home country? Why? China has a fixed exchange rate for the yuan (the currency they use for foreign trade). Many people argue that the yuan is overvalued. What impact does this have for US trade with China.
Explain the three types of exchange rate systems:
free-floating, managed, and fixed. Discuss the differences between
them. What are the advantages and disadvantages of each system?
Which system is the United States currently operating? Do you think
the U.S. should change the type of exchange rate system? Why or why
not?
Read the Case: China’s Managed Float Why do you think the
Chinese government originally pegged the value of the yuan against
the U.S. dollar? What were the benefits of doing this to China?
What were the costs? What do you think the Chinese government
should do? Let the float, maintain the peg, or change the peg in
some way?
China’s Managed Float
In 1994, China pegged the value of its currency, the yuan, to
the U.S. dollar at an exchange...
Read the Case: China’s Managed Float Why do you think the
Chinese government originally pegged the value of the yuan against
the U.S. dollar? What were the benefits of doing this to China?
What were the costs? What do you think the Chinese government
should do? Let the float, maintain the peg, or change the peg in
some way? i dont want picture of answer
China’s Managed Float
In 1994, China pegged the value of its currency, the yuan, to...
Read the Case: China’s Managed Float Why do you think the
Chinese government originally pegged the value of the yuan against
the U.S. dollar? What were the benefits of doing this to China?
What were the costs? What do you think the Chinese government
should do? Let the float, maintain the peg, or change the peg in
some way? i dont wanna picture of answers, please add some personal
comment about case
China’s Managed Float
In 1994, China pegged the...
An important difference between fixed and floating exchange
rates is the impact on monetary policy. This difference is framed
by some economists as being a benefit of floating exchange rates,
but other economists frame the same thing as a benefit of fixed
exchange rates. Explain each side of the argument, and then give
your own opinion.
An important difference between fixed and floating exchange
rates is the impact on monetary policy. This difference is framed
by some economists as being a benefit of floating exchange rates,
but other economists frame the same thing as a benefit of fixed
exchange rates. Explain each side of the argument, and then give
your own opinion.
If you were the President of the United States and had
to choose between spending on improvements in infrastructure
(bridges, roads, trains, etc.), providing health care guarantees to
families, or enhancing our military strength, which would you
choose? Explain why in as much detail as possible.