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

Author Question: Explain briefly PPP and IRP. Why might the latter hold better than the former over time? What ... (Read 77 times)

sdfghj

  • Hero Member
  • *****
  • Posts: 552
on: Jun 30, 2018
Explain briefly PPP and IRP. Why might the latter hold better than the former over time?
 
  What will be an ideal response?

Question 2

Explain why East Asian countries have done so well relative to South American countries.
 
  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

tofugiraffe

  • Sr. Member
  • ****
  • Posts: 319
Reply #1 on: Jun 30, 2018
Answer to Question 1

IRP holds better because financial asset prices adjust faster to new information than goods prices.

Answer to Question 2

Mainly, the reasons are: less moral hazard, less government debt to foreigners and smaller budget deficits in East Asian countries.


sdfghj

  • Member
  • Posts: 552
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

tranoy

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

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?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Applying a time strip to the IV container. Applying a time strip to the IV container.
Students rated their grandparents on a scale from 1 to 4 based on emotional closeness, time spent ... Students rated their grandparents on a scale from 1 to 4 based on emotional closeness, time spent ...
Time course for antibodies to the EBV viral–specific antigens. Time course for antibodies to the EBV viral–specific antigens.
Control you knife with one hand and hold the item being cut with the other (3 of 3) Control you knife with one hand and hold the item being cut with the other (3 of 3)
The Geologic Time Scale The Geologic Time Scale
Explain how it can be desirable from an intertemporal perspective for a country run a current ... Explain how it can be desirable from an intertemporal perspective for a country run a current ...
Video: Graded potentials - electrical characteristics and types

For a complete list of videos, visit our video library