Description
Module 13 ECON DB: Exchange Rate Systems and Currency Crises
Currency Devaluation
- Discuss the purpose of a currency devaluation? What about a currency revaluation? Under what circumstances should a nation devalue currency?
- Identify a developing country that adopted currency boards? Discuss why they chose this instead of dollarizing their monetary systems.
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.
This module will look at exchange rate systems more broadly. We will consider a worst-case scenario for balance of payments (BOP) and exchange rate disequilibrium that has become all too present in today’s global economy—the currency crisis.
Learning Outcomes
- Describe various exchange rate systems that have been used historically and are used currently.
- Analyze currency crises and the economic mechanisms that bring currency crises about.
Readings
Required:
Chapter 14 in International Economics
Kamal, U., Dharmendra, D. & Franklin, M. (2020). Exchange rate volatility and exports: some new estimates from the Asean-5. Journal of Developing Areas, 54(1), 65-73.
Recommended:
Chapter 14 PowerPoint slides
Lee, S. (2020). Foreign exchange rate uncertainty in Korea. East Asian Economic Review, 24(2), 165-184. Retrieved from
