1.Indonesia has experienced several exchange rate regimes. Give an explanation of the positive and negative sides of each of these regimes and explain the reasons why each regime was replaced.

2.In a managed floating exchange rate system, the government can do devaluation or revaluation of its currency against foreign currencies. Give an explanation of the policy of devaluation and revaluation. Explain (with an example) the impact of devaluation or revaluation for the economy.