2.23
[Related to the Making the
Connection on page 1008] A
report from the Organization for Economic Cooperation and
Development (OECD) notes that: “Iceland appears to have the
smallest independent, floating currency in the world. Other
countries the size of Iceland either do not have their own currency
(Estonia, Luxembourg, Malta) or peg their currency to that of
another country (Barbados, Bahamas, Belize, Brunei, Latvia,
Lithuania, Maldives, Netherlands Antilles).”
a.Why might small countries decide to not allow
their currencies to float?
b.The report also...