--%>

Maintaining the fixed exchange rate

Explain why “Once  the capital markets are integrated, it becomes difficult for the country in order to maintain the fixed exchange rate”. 

E

Expert

Verified

Once the capital markets are internationally integrated, large amount of money can flow in and out of the country within the short time period. This can make it really difficult for country to maintain the fixed exchange rate.

   Related Questions in Financial Accounting

  • Q : Advanced Accounting-Consolidated

    I have worked the problem. I need to know if it is correct. If not, what I'm missing.

  • Q : Characteristics of Composite currency

    State the characteristics of the Composite currency bonds market instrument.

  • Q : Case study of Espresso Tax Seattle is

    Seattle is currently considering a 10-cent tax on espresso drinks to pay for pre-school and day-care programs. The legislation’s sponsor, Rep. Burbank, argues that people who spend $3-5 on exotic espresso based coffee drinks can afford – and will be &ldquo

  • Q : Whether MNC open their manufactoring

    For most global companies, China symbolizes a very attractive market in terms of size and growth-rate. Yet, it ranks lower in words of economic freedom and higher in political risk than other countries' markets because it has a communist government. Despite such risks

  • Q : Transaction and Economic exposure

    Define transaction exposure and explain how it is different from the economic exposure?

  • Q : Advance methods which are used in banks

    What are the advance methods which are used in banks presently?

  • Q : Exchange rate changes decreases risk of

    Would exchange rate changes always raise the risk of the foreign investment? Explain some of the condition under which exchange rate changes can actually decrease the risk of foreign investment.

  • Q : Creatives and Suites What happens when

    What happens when creativity based on individual exceptionalism has evolved as part of the orthodoxy of Western managerial practice is applied within a creative business organisation in the business of “symbolic production&rdquo

  • Q : Free-riding firms without tradable

    Explain how do firms with no tradable assets get free-ride from the firms whose securities are internationally tradable?

  • Q : Calculate the bad debt expense for the

    The Webster Company uses the aging method to estimate the allowance for doubtful accounts. The following schedule of accounts receivable was prepared as at December 31, 20x6: Age Balance %