"Even under flexible exchange rate regime, governments could not be indifferent to the behavior of exchange rates and inevitably surrendered some of their policy autonomy in other areas to prevent exchange rate movements they viewed as harmful to
their economies." Discuss.
True. One example is Volcker in October 1979 decreasing the U.S. money supply to halt further weakening of the dollar.
Economics
You might also like to view...
Refer to the figure above. What is the equilibrium employment if the labor demand curve is LD1 and the labor supply curve is LS1?
A) 5 units B) 20 units C) 15 units D) 10 units
Economics
What is meant by the term "free market"?
What will be an ideal response?
Economics
Describe how UPS has used positive technological change to improve its package handling and delivery schedule
What will be an ideal response?
Economics
When the Federal Reserve System was established in 1913, its main policy goal was
A) encouraging strong economic growth. B) promoting price stability. C) preventing bank panics. D) keeping employment high.
Economics