Review the material in Chapter 14 and respond to the following:

1. Suggest monetary solutions for the present financial crisis and discuss if those solutions are always applicable

2. After carefully reading all the available information within the readings for this week(Chpt. 14-18), prepare a two page (double-spaced) essay and answer the following questions:

1. Why the simultaneous targeting of the money supply and interest rates is sometimes impossible to achieve?
2. How do central banks intervene in foreign exchange markets?
3. What did the Bretton Woods Agreement do to the ability of foreign exchange rates to fluctuate freely?