1. How can persistent U.S. balance-of-payments deficits stimulate world inflation?
2. Why did the exchange rate peg lead to difficulties for the countries in the ERM when German reunification occurred?
3. Why is it that in a pure flexible exchange rate system, the foreign exchange market has no direct effects on the monetary base and the money supply? Does this mean that the foreign exchange market has no effect on monetary policy?
No comments:
Post a Comment