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ECN 450 Topic 8 Discussions GCU
ECN 450 Topic 8 DQ 1
Explain why some developing countries have a “fear of
floating” and opt instead for a fixed exchange rate regime. What are the risks inherent
in this decision?
ECN 450 Topic 8 DQ 2
Describe one weakness and one strength of the gold
standard. Do you agree with Milton Friedman that any system of pegged exchange
rates is not a satisfactory system for countries with independent political systems;
or do you agree with Ronald McKinnon when he says that the choice of exchange
rate regime in a highly integrated global economy cannot be made by individual
countries? Explain.
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