CHECK THESE SAMPLES OF Macroeconomics. A fixed exchange rate
As far as fixed exchange rate systems are concerned, central banks can finance any disbalances and fix them up.... hellip; The author states that multifarious factors can help to achieve macro-economic equilibrium under both fixed and floating exchange rate systems.... owever, in the floating exchange rate system, the currency rate is determined by the forces of demand and supply and thus, central banks cannot help there.... he level of reserves and capital inflows and outflows, as well as the type of exchange rate that is whether it is fixed or floating, is also worthy of mention....
2 Pages
(500 words)
Essay
(1999) differentiates the fixed and floating exchange rate regimes through the following: in a fixed exchange rate system, foreign central banks stand ready to buy and sell their currencies at a fixed price in terms of another currency, for example, dollars.... (1999) differentiates the fixed and floating exchange rate regimes through the following: in a fixed exchange rate system, foreign central banks stand ready to buy and sell their currencies at a fixed price in terms of another currency, for example, dollars....
11 Pages
(2750 words)
Essay
The traditional debate on exchange rate systems focused on insulating properties of flexible exchange rates as in Friedman and Meade.... One consequence of fixed exchange rates is that nations may not be able to pursue independent monetary policies The traditional debate on exchange rate systems focused on insulating properties of flexible exchange rates as in Friedman (1953) and Meade (1955).... nother aspect of the exchange rate system is the different operating procedures of macroeconomic policies under alternative exchange rate systems....
5 Pages
(1250 words)
Essay
International trade is one of the most important macroeconomic decision of a country as it affects its exchange rate, the interest rate and other aspects of the economy.... Africa's trade with other countries can be traced in the first millennium AD, when “the Axumite Kingdom had a prosperous trade empire on the eastern horn, where the modern states of Ethiopia and Eritrea lie” (Wikimedia Foundation, Inc....
11 Pages
(2750 words)
Essay
The exchange rate will fall.... The exchange rate is the rate at which one currency exchanges for another.... For example, the exchange rate of the pound into the dollar might be £1= $1.... If they are not equal, the rate of exchange would have to adjust until they were, or the government would have to intervene to make them equal.... In order to achieve the goals of high and sustainable economic growth, low unemployment, low inflation, a satisfactory balance of payments and stable exchange rates,...
6 Pages
(1500 words)
Term Paper
Progressive economic growth manifests in the growth rate of a country's gross domestic product.... Inflation is the rate at which prices of goods and services in a country rise.... Principles of macroeconomics.... National output defines the amount of services and goods produced by a country (Rittenberg 42- 45; Mankiw 13)....
1 Pages
(250 words)
Assignment
Why cant the country use monetary policy while keeping the fixed exchange rate?... To fix an exchange rate, a country can choose to give floating… A country can decide to give floating currency in order to amend external shocks brought about by the exchange rate.... Those countries which have fixed countries encounter pressure on their wages and prices thus the need to fix their exchange rate.
In the IS-MR-PC Model Microeconomics short answers 1 True 2 In the deleveraging model prices or interest rates fall when binding ondebtors get tighter because borrowing gets harder and therefore interest rates have to go down sharply to attract more buyers....
2 Pages
(500 words)
Admission/Application Essay
The arguments in favour and against the topic can be highlighted with the help of the statement that emphasizes that floating exchange rate is effective in implementing the monetary policy and ineffective or inefficient in implementing the fiscal policy whereas in case of the fixed exchange rate it is effective in implementing the fiscal policy and it is unable or incapable for formulating the monetary policy.... This statement can be better explained with the help of the fact that during the situation of the international crisis in the economy, the central banks… f each of the developed countries has formulated and implemented the monetary policies that has affected and influenced the capital inflow and outflow of the capital across the countries all over the world.
The role of the floating exchange rate in controlling the inflow and flow of capital can be supported with the example of Argentina which has experienced the floating exchange rate in the economy and the volatility and the evolution of the exchange rate which was not affected severely due to the international crisis in spite of the rise or the increase in the exchange rate....
9 Pages
(2250 words)
Essay