Using the Mundell Fleming model and portfolio based model analyse the disadvantages and advantages of Bulgaria joining the eurozone with emphasis on macroeconomic characteristics.Provide detailed analysis on the affects. And conclud
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- Can you provide a detailed analysis and conclusion Using the Mundell Fleming model and portfolio based model analyse the disadvantages and advantages of Bulgaria joining the eurozone with emphasis on macroeconomic characteristics. Provide detailed analysis on the affects. And conclude whether they should join or notCountry: Brazil Part 1 - What kinds of specific actions has the IMF taken in order to address economic or financial crises of your focus country? What is an example of any relationship or interaction that your focus country has had with the IMF? Part 2 – What are 3 examples of FDI news related to your focus country? (this could include information about investment promotion activity that your country sponsors/promotes) Part 3 – Please post images related to the following topics (include some verbiage explaining them) -FDI -foreign exchange market -regional economic integrationCompare and contrast currency crises models
- Participants in the foreign exchange market are asked to explain the viewpoint of forex traders, brokers, individuals / companies, speculators and regulatory authorities.The correction of overvalued exchange rates involves revaluation, interest rate and trade liberalization, and other market liberalization measures including price controls and the removal of subsidies. Select one: True FalseEconomists are of the view that the Mundell-Fleming Model is quite useful for explaining economic fluctuations in small open economies. Critically assess this statement.
- How would a new gold standard contribute to macroeconomic stability in emerging economies with international financial capital inflows into their capital structures?An analyst estimates the following exchange rate model for the yen currency against the dollar: Expected rate of appreciation of yen against the dollart(%)= =0.1[idollart-2(%) – iyent-2(%)]+0.5[idollart-1(%) – iyent-1(%)]+1.0[idollar(%)t – iyen(%)t]2+ +0.1[GDPJAPt(%) – GDPUSt(%)]. In this model, idollart(%) is the one-year interest rate in the US in period t, iyent(%) is the one-year interest rate in Japan in period t, idollart-1(%) is the one-year interest rate in the US in period t-1, iyent-1(%) is the one-year interest rate in Japan in period t-1, idollart-2(%) is the one-year interest rate in the US in period t-2, iyent-2(%) is the one-year interest rate in Japan in period t-2,GDPUSt(%) refers to annual GDP growth in the US in period t and GDPJAP(%) refers to annual GDP growth in Japan in period t. Assume idollart-2=4%, iyent-2=2%,idollart-1=5%, iyent-1=3%, GDPUSt=3% and GDPJAPt=1%. Calculate the one-year interest rate differential idollar(%)t – iyen(%)t that delivers an…In Accounting, which of the following best defines "country risk"? a) The risk associated with currency exchange rate fluctuations. b) The potential for political instability or economic turmoil in a particular country. c) The risk of fraud or mismanagement within a country's financial institutions. d) The likelihood of natural disasters affecting a country's economy.
- Foreign Direct Investment, compared to exports, involves high transportation costs and various trade barriers. Select one:falseFalseIn answering the question, you should emphasize the line of reasoning that generated your results; it is not enough to list the results of your analysis. Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. Suppose that Singapore wants to return the exchange rate to 1 euro = 0.58 Singaporean dollars. Should the Singaporean central bank buy or sell euros in the foreign exchange market? Instead of buying or selling euros, what domestic open-market operation can the Singaporean central bank use to achieve the same result? Explain.a) Discuss the effect of a sterilized central bank purchase of foreign assets under the imperfect asset substitutability assumption. (B). Explain why the DD-AA model yields the conclusion that in an economy in which the exchange rate is fixed, the fiscal policy is more effective but monetary policy is less effective than under flexible exchange rates.