Assignment:
Analyze Alternative Exchange Rate Regimes
There are several arguments for and against the alternative exchange rate regimes. Prepare a 2 to 4 page paper presenting both sides of the argument. In your paper:
- List and explain the advantages of the flexible exchange rate regime.
- Criticize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime.
- Refute the above criticism from the viewpoint of the proponents of the flexible exchange rate regime.
- Discuss the impact the increased volatility in interest and foreign exchange rates has on global institutions.