Explore the advantages and disadvantages of flexible and fixed exchange rate systems to understand their impact on global economics.
Any country that adopts a Pegged Exchange Rate system has to maintain a huge foreign exchange reserve. This is due to the constant open market operations that it has to undertake. It has to stabilize the value of its currency with regard to the value of the pegged foreign currency. Therefore...
Evaluate two advantages of managed exchange rates and two advantages of fixed exchange rates. What types of organizational benefits does value chain management provide? What are the benefits and drawbacks with the use of milestone analysis as a monitoring d...
As a consequence, if the exchange rate is flexible and not fixed, due to these large persistent deficits, the exchange rate or international value of their currencies will be continuously falling. Thus fixed exchange rate system prevents this continuous tendency for the depre...
In defence of fixed exchange rate system, it has been pointed out that it ensures stability in exchange rate. Exchange rate stability, it is said, is necessary for orderly development of the international economy and rapid growth of world trade. ...