Author Question: When an exchange-rate crisis befalls a pegged currency, experience suggests that damage to the ... (Read 59 times)

cartlidgeashley · **on:** Jun 30, 2018

When an exchange-rate crisis befalls a pegged currency, experience suggests that damage to the economy may be minimized by ________.

A) appealing to creditors to provide more liquidity
B) rapid adoption of a currency board
C) abandoning the peg
D) launching speculative counter-attacks

Question 2

When a temporary negative supply shock hits the economy ________.

A) the divine coincidence does not always hold
B) the divine coincidence holds in the short-run
C) the divine coincidence does not hold in the long-run
D) all of the above
E) none of the above