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4. Helania is a small country in Eastern Europe with a hard peg currency system that uses the euro. The country is undergoing a
4. Helania is a small country in Eastern Europe with a hard peg currency system that uses the euro. The country is undergoing a string of financial deregulations and is considering adopting a new FX system. As such, the Helanian government is considering creating its own currency, the Helanian 'Hela'. To do so, the government is considering two system options: (1) a conventional-pegged arrangement to the euro; or (2) a free-floating Hela. a. Discuss how these new systems would compare to their current arrangement (minimum 200 words) b. Identify the main disadvantages to adopting either system. (minimum 200 words)
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