Discuss the benefits and costs of joining a fixed-exchange area.Answer:Benefits: in general, gains from the stability of the area and reduced uncertainty. The efficiency gain from ...

Discuss the problems that the EMU will face in the coming years.Answer: pages 631-632. (1) Europe is not an optimum currency area; therefore asymmetric economic developments within...

A hard and difficult issue.During the Reagan administration, the creation of twin deficits, whereby slashing taxes, government deficits increased, which was accompanied with increa...

Under fixed exchange rate, show using a figure, the effects of an expansionary fiscal policy. Show the equilibrium under a flexible exchange rate. Discuss the difference in  the t...