This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain the difficulties in regulating international banking. What will be an ideal ... (Read 100 times)

Destiiny22

  • Hero Member
  • *****
  • Posts: 557
on: Jun 30, 2018
Explain the difficulties in regulating international banking.
 
  What will be an ideal response?

Question 2

Using the II-XX framework, show using a figure that fiscal policies by themselves cannot bring the economy to both internal and external balances.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

komodo7

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jun 30, 2018
Answer to Question 1

(1 ) No deposit insurance, in particular, inter-bank deposits are unprotected
(2 ) Absence of reserve requirements
(3 ) bank examination more difficult to enforce
(4 ) not clear which group of regulators has responsibility for monitoring a given bank's assets
(5 ) not clear which central bank, if any, is responsible for providing Lender of Last Resort assistance.

Answer to Question 2

Starting at point 2, fiscal policy is shown as only horizontal movements. This means that the economy can reach either point 3 (internal balance) or point 4 (external balance) in the figure, but not both internal and external balances. Only a devaluation of the currency accompanied with an increase in fiscal ease, namely increasing government expenditures or decreasing taxes, will move the economy to both internal and external balances at point 1 in the figure.


Destiiny22

  • Member
  • Posts: 557
Reply 2 on: Jun 30, 2018
:D TYSM

isabelt_18

  • Member
  • Posts: 342
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

B, regulating roller clamp and slide clamp; B, regulating roller clamp and slide clamp;
Renzo Piano Building Workshop, Aerial view of Kansai International Airport, Osaka, Japan. Renzo Piano Building Workshop, Aerial view of Kansai International Airport, Osaka, Japan.
Draw and label a diagram and explain how a factor-dependent transcription (rho-dependent) terminator Draw and label a diagram and explain how a factor-dependent transcription (rho-dependent) terminator
Region’s Culture in International Context Region’s Culture in International Context
Social scientists have not done well at devising theories to explain lovely romantic moments Social scientists have not done well at devising theories to explain lovely romantic moments
International space station International space station
Video: Mechanism of enzyme action

For a complete list of videos, visit our video library