Question 1:
Analyze the following statement: "Given an open economy with high capital mobility, fiscal policy is strengthened under fixed exchange rates."
Question 2:
What is international economic policy coordination? Using an example, illustrate the logic of policy coordination.
Question 3:
Analyze the following statement: "The demand for international reserves tend to increase with the level of world income and trade activity."
Question 4:
How might debt/equity swaps help solve the international debt problem? Point out the benefits and drawbacks from the viewpoint of the debtor country. Why do you think the debt/equity swap market has remained small over the years?