Exchange Rate Regimes. Be able to explain the types of exchange rate regimes that a...
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Exchange Rate Regimes. Be able to explain the types of exchange rate regimes that a country could choose from. Discuss the advantages and disadvantages of each (fixed vs. floating) and in particular, discuss who benefits from (or loses in) each type of system. Frame your discussion in terms of the impossible trinity (aka the Trilemma); that is, be able to discuss how the choice of exchange rate regimes relates to a countrys ability to conduct independent monetary policy and allow free capital movement.
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