Description
Compare the collapse of pegged regimes (e.g., Argentina 2001, Thailand 1997) with the stability of hard pegs (e.g., Saudi Arabia, Hong Kong).
- Discuss how speculative attacks, reserve depletion, and inconsistent monetary policies trigger crises under fixed regimes.
- Discuss if floating regimes are inherently safer.
- Discuss trade-off regime choices of countries and the occurrence of a currency crisis.
Directions:
- Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
- Your initial post should address all components of the question with a 500 word limit.
- Reply to at least two discussion posts with comments that further and advance the discussion topic.
remember please the professor wants to have stories. As he is saying always” no stories without numbers, and no numbers without stories”.