ECN 450 Topic 8 Discussions GCU

 ECN 450 Topic 8 Discussions GCU

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ECN 450 Topic 8 DQ 1

Explain why some developing countries have a “fear of floating” and opt instead for a fixed exchange rate regime. What are the risks inherent in this decision?

ECN 450 Topic 8 DQ 2

Describe one weakness and one strength of the gold standard. Do you agree with Milton Friedman that any system of pegged exchange rates is not a satisfactory system for countries with independent political systems; or do you agree with Ronald McKinnon when he says that the choice of exchange rate regime in a highly integrated global economy cannot be made by individual countries? Explain.

 

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