Why will the 'discipline' imposed on governments by a fixed exchange rate disappear under a floating rate regime be a problem?A.Tempted to follow over expansionary fiscal policyB.T...

Why did the EU countries move away from the EMS toward the goal of a single shared currency?Answer:To produce a greater degree of European market integration by removing the threat...

The main reason(s) why governments sometimes chose to devalue their currencies is (are):A.devaluation allows the government to fight domestic unemployment despite the lack of effec...

Explain why under fixed exchange rate, monetary policy is ineffective whereas under floating exchange rate it is effective in risingAnswer: Under floating, by purchasing domestic a...