Problem
1. "Flexible exchange rates, like democracy, is not the best system; it is merely the least bad." Explain.
2. How can central banks be caught in a new version of the Meade conflict cases under floating exchange rates?
3. On what grounds might one conclude that the current membership of the European Monetary System is too large to be an optimum currency area?
4. "Latin America lived very well in the 1970s, but the region paid for its sins in the 1980s." Explain. Who else paid for those sins?
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.