Question
1. Suppose you were asked by a policymaker to outline an argument for choosing an exchange rate regime. Given all we have learned throughout the
1. Suppose you were asked by a policymaker to outline an argument for choosing an exchange rate regime. Given all we have learned throughout the semester thus far, which regime would you argue for? Why do you view your choice as the superior option? What possibilities does it unlock or prevent that the alternative selection fails to account for?
2. Suppose someone was concerned about a given country running a CA deficit and therefore a FA and KA surplus. Would this be viewed as a positive or negative set of traits for that country? Assume the country is rather typical (i.e. not the U.S.). Would this set of imbalances be sustainable or not?
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