Answer to Question #212162 in Macroeconomics for Catherine Melita

Question

In about 1000-1500 words, write a well-researched ess

For any developing country, analyze its exchange rate system and all recent developments in its exchange rate policies. Use these to answer the following questions in your writing:

1. What are monetary and fiscal policy implications of the exchange rate system adapted by the selected country?
2. What is the devaluation history (dates) of the selected country? Have past devaluations achieved the targeted economic objectives?
3. How trade has performed in the selected country post-devaluation?
4. What are your views on ensuring better BOP-NIIP outcomes of this country?

After searching the history of exchange rate regime in your selected country, you explain conceptually about efficacy of each exchange rate system (fixed, floating and pegged) and its implication on monetary policy and fiscal policy. Next discussion should be on devaluation, its objectives and situation analysis post devaluation. Answer all questions above.

Answer 1

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