Discuss the impact of the restoration of convertibility in 1958
What will be an ideal response?
As foreign exchange trading expanded, financial markets in different countries became more tightly integrated, an important step towards the creation of today's worldwide foreign exchange market. With growing opportunities to move funds across borders, national interest rates became more closely linked and the speed with which policy changes might cause a country to lose or gain international reserves increased.
You might also like to view...
Refer to Table 10-7. Suppose Antonio has $10 to spend and the price of beer = $2 per glass and the price of pizza = $2 per slice. How many of each good will he consume when he maximizes his utility?
A) 2 glasses of beer, 3 slices of pizza B) 3 glasses of beer, 2 slices of pizza C) 4 glasses of beer, 5 slices of pizza D) 2 glasses of beer, 1 slice of pizza
Persistent wage differentials between people having different skills violate the W = MRP ethic associated with the perfectly competitive market for labor
Indicate whether the statement is true or false