Problem
1. Why do nations use a crawling-peg exchange rate system?
2. What is the purpose of capital controls?
3. What factors contribute to currency crises?
4. Why do small nations adopt currency baskets against which to peg their exchange rates?
5. What advantage does the SDR offer to small nations seeking to peg their exchange rates?
6. Present the case for and the case against a system of floating exchange rates.
7. What techniques can a central bank use to stabilize the exchange value of its currency?
8. What is the purpose of a currency devaluation? What about a currency revaluation?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.