Question:
What are the Advantages of a Fixed Exchange Rate?
Author: eric_galvaoAnswer:
-Speculation is Reduced unless there are Fears of a possible Revaluation or Devaluation -Competitive Pressures placed on Firms. They must keep Costs Down, Invest, and Boost Productivity to Be Competitive. Can not Rely on Devaluations -Fixed Exchange Rate brings Stability which can Encourage Investment
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