lain the determinants of exchange rates in the short run, analysis can be used.... a. The law of one price b. Asset demand theory c. Quantity theory of money

Manuben

Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O appreciate; fall O depreciate; rise O depreciate; fall

Explanation it very good and clear. Not copy paste from anywhere.and give concept throughout

Define and derive the monetary approach to exchange rates. Why is it called a long-run model?   Don't copy. I ll rate

Please help me with these question. Thank you 1. Many countries experiencing high and rising inflation, or even hyperinflation, will adopt afixed exchange rate regime. Discuss the potential costs and benefits of a fixed exchange rateregime in this case. Comment on fiscal discipline, seigniorage, and expected future inflation. 2. In the late 1970s, several countries in Latin America, notably Mexico, Brazil, and Argentina,had accumulated large external debt burdens. A significant share of this debt wasdenominated in U.S. dollars. The United States pursued contractionary monetary policy from1979 to 1982, raising dollar interest rates. How would this affect the value of the LatinAmerican currencies relative to the U.S. dollar? How would this affect their external debt inlocal currency terms? If these countries had wanted to prevent a change in their external debt,what would have been the appropriate policy response, and what would be the drawbacks?  3. The economic costs of currency crises…