Real exchange rate measurements and determinants Real exchange rate is regarded as an important economic issue, which interacts with the economy growth of a country. It relates to the nominal exchange rate and relative price both in home country and foreign country (Ellis, 2002). It is worthwhile t...
Australia, a developed economy compared to the developing to economy of Pakistan, faced a lesser inflation rate and other macroeconomic difficulties, whereas Pakistan had to keep higher interest rates to cope up with the higher inflation rate and other deficits. ...
Content 1. Introduction 2. The mechanism of the Linked Exchange Rate System 3. Pros 4. Cons 5. Alternatives 6. Conclusion 7. Reference Introduction The linked exchange rate regime was originated for a one-time need to contain the sharp depreciation of HK$ on 17 Octob...
For sure the most concerned and agitated about it is the Federal Reserve System and "Broadly, the Federal Reserve's response has followed two tracks: efforts to support market liquidity and functioning and the pursuit of our macroeconomic objectives through monetary policy " (Krugman P. (2007)). ...
After time and a lot of political economy arguments, a lot of economic experts agreed that a fixed or pre determined nominal exchange provided an effective device for guiding a disinflation program, and for maintaining macroeconomic stability. ...
