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What is the meaning of globalization? What is its advantage and disadvantage? Why is there an anti-globalization movement?
Explain the fundamental causes of the economic crises in emerging markets in the second half of the 1990s.
With regard to the Mexican crisis of December 1994, indicate the lesson that it provides on how to deal with a currency crisis once it starts.
How does the International Monetary Fund propose to avoid the recurrence of similar crises in the future?
How a nation could attempt to discourage large destabilizing international capital inflows under the Bretton Woods system by intervening in the forward market.
Explain the procedure whereby the nation of Problem 2 borrowed the maximum amount allowed from the IMF in each year after it had already borrowed.
How the nation was to pay in its quota to the IMF and the amount that the nation could borrow in any one year under the original rules.
How economic conditions today differ from those prevailing under the gold standard period.
What are the major problems facing the world today? What is being proposed to solve them?
How is the value of the SDR determined today? What additional credit facilities have been set up by the IMF?
Using trend-adjusted exponential smoothing. Forecasts (Ft). Trend (ft). and Forecasts Including Trend (F/Tt) for months 1 through 6 have already been developed.
What was the Smithsonian Agreement? What is meant by the European snake? the dollar standard? adjustment liquidity, confidence?
What was meant by the dollar shortage? What were Roosa bonds? What was the purpose of the Interest Equalization Tax and the Foreign Direct Investment Program?
What is meant by international macroeconomic policy coordination? Why is it needed? How does it operate?
What is the advantage of a managed floating system with respect to a freely floating exchange rate system and a fixed exchange rate system?
What is meant by a crawling peg system? How can such a system overcome the disadvantage of an adjustable peg system?
What is meant by an adjustable peg system? What are the advantages and disadvantages of an adjustable pege system with respect to a system?
What is the effect of increasing the allowed band of exchange rate fluctuation under a fixed exchange rate system?
What is meant by currency board arrangements? dollarization? Why would a nation adopt one or other? How does each operate? What are benefits and costs of each?
What is meant by the European Monetary System? How has it functioned since its establishment? What is the European Monetary Union? the euro?
What are the main advantages and disadvantages of an optimum currency area? What are the conditions required for the establishment of an optimum currency area?
Indicate what overall conclusion can be reached on whether a flexible or a fixed exchange rate system is preferred.
What are the alleged advantages of a fixed over a flexible exchange rate system? How would the advocates of flexible exchange rates reply?
What are the two main types of advantage of a flexible as opposed to a fixed exchange rate system?
How does a fixed exchange rate system in general adjust balance-of-payments disequilibria? Why is the choice between these two basic types of adjustment system.