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Author Question: Nicaragua in the early 2000s set its exchange rate with the U.S. dollar to decrease monthly by 1. ... (Read 13 times)

Alainaaa8

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on: Jun 30, 2018
Nicaragua in the early 2000s set its exchange rate with the U.S. dollar to decrease monthly by 1. This is an example of
 
  A) a crawling peg.
  B) bad currency management.
  C) a parity band.
  D) a currency board.

Question 2

Suppose that a developing country devotes extensive resources towards improving the education and skill level of the labor force.
 
  How might this help the country avoid a coordination failure? Is this strategy likely to be successful? Why or why not?


blakcmamba

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

See page 166 for an answer to the first part. The answer to the second part is more open ended and will depend on lecture coverage.


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