Consider how fixed exchange rate regimes differ in advanced economies versus emerging markets/developing countries.

a. How do exchange rate crises differ across these groups?

b. Among which groups are the economic costs higher? Cite evidence to support your answer.

c. A depreciation leads to an expansion in export demand. Given your answer to (b), why does the other group of countries suffer political costs?

d. Based on the analysis in the previous chapter, which group of countries is more likely to adopt a fixed exchange rate regime?

e. Which groups are more likely to suffer from twin or triple crises? Why?