Not a good title. A paper should have a point.  See How to Write a Good Paper.  The point could be expressed in the title. As it stands, I would give you only 1 point out of 5. You have time to submit a revised paper.  You should try to keep your arguments clear.  Show that you understand how the IMF worked under Bretton Woods and how it works under the current regime with widespread floating. 1. p2. You don't explain how a managed float differs from a pure float. It's very simple, but you don't explain it. 2. p. 3. The IMF is not an insight.  Same page: the Bretton Woods system was one of fixed exchange rates.  3. You don't lay out the simple arguments for and against flexible exchange rates.  4. I inserted a few comments in the paper.  If you want to resubmit, I will need to clear your attempt so that you can submit a new one. (sign out) Home My Assignments Grades Communication Calendar My eBooks MA10020200440097, section 40097, Spring 2020 Current Score QUESTION POINTS 1 2 3 4 5 6 7 8 TOTAL SCORE –/16 0.0 % WED, APR 22, 2020 AM EDT 12:59 Request Extension Assignment Submission & Scoring Assignment Submission For this assignment, you submit answers by question parts. The number of submissions remaining for each question part only changes if you submit or change the answer. Assignment Scoring –/1 –/1 –/3 –/2 –/1 –/2 –/2 –/4 Due Date Your last submission is used for your score. You are planning a trip to visit a friend. According to Google Maps, the trip is 1,463 miles. If you would like to make the trip in three days, approximately how many miles a day must you drive? mi –/1 AUFQR1 1.2.019. The following graph shows the expected lifetime earnings, in thousands of dollars, for a person who attains certain academic degrees. For instance, the lifetime earnings of a person who receives an associate degree (AS) is approximately $1,730,000. Yes No ℹ From the graph, does it appear that as more advanced degrees are earned, there will be higher lifetime earnings? –/3 AUFQR1 1.2.021.EP. A survey of pet owners who keep their pets in their homes or apartments were asked what kind of pet they owned. The percent of owners who responded for each pet type is shown in the following circle graph. ℹ If exactly 50% of the respondents had dogs, the portion of the circle graph representing the response "dogs" would be exactly ---Select--- of the area of the circle. The portion of the circle graph that represents the percent of respondents who had dogs is ---Select--- . From the graph, is it reasonable to estimate that more than 50% of the respondents had dogs? Yes No –/2 AUFQR1 1.2.023. The following line graph shows the total student loan debt, in billions of dollars, in the United States for selected years. ℹ (a) Between which two years did total student loan debt first exceed $1 trillion? (1 trillion is 1,000 billions). 2011 and 2012 2012 and 2013 2013 and 2014 2014 and 2015 2015 and 2016 2016 and 2017 2017 and 2018 ...

1. Not a good title. A paper should have a point. See How to
Write a Good Paper. The point could be expressed in the title.
As it stands, I would give you only 1 point out of 5. You have
time to submit a revised paper.
You should try to keep your arguments clear. Show that you
understand how the IMF worked under Bretton Woods and how
it works under the current regime with widespread floating.
1. p2. You don't explain how a managed float differs from a
pure float. It's very simple, but you don't explain it.
2. p. 3. The IMF is not an insight. Same page: the Bretton
Woods system was one of fixed exchange rates.
3. You don't lay out the simple arguments for and against
flexible exchange rates.
4. I inserted a few comments in the paper.
If you want to resubmit, I will need to clear your attempt so that
you can submit a new one.
(sign out) Home My Assignments Grades Communication
Calendar My eBooks
MA10020200440097, section 40097, Spring 2020
Current Score
QUESTION
POINTS
1
2
3

2. 4
5
6
7
8
TOTAL SCORE
–/16
0.0
%
WED, APR 22, 2020
AM EDT
12:59
Request Extension
Assignment Submission & Scoring
Assignment Submission
For this assignment, you submit answers by question parts. The
number of submissions remaining for
each question part only changes if you submit or change the
answer.
Assignment Scoring
–/1
–/1
–/3
–/2
–/1
–/2
–/2
–/4
Due Date
Your last submission is used for your score.
You are planning a trip to visit a friend. According to Google
Maps, the trip is 1,463 miles. If you would like to make the trip
in three days, approximately how many miles a day must you
drive?

3. mi
–/1 AUFQR1 1.2.019.
The following graph shows the expected lifetime earnings, in
thousands of dollars, for a person who attains certain academic
degrees. For instance, the lifetime earnings of a person who
receives an associate degree (AS) is approximately $1,730,000.
Yes
No
ℹ
From the graph, does it appear that as more advanced degrees
are earned, there will be higher lifetime earnings?
–/3 AUFQR1 1.2.021.EP.
A survey of pet owners who keep their pets in their homes or
apartments were asked what kind of pet they owned. The
percent of owners who responded for each pet type is shown in
the following circle graph.
ℹ
If exactly 50% of the respondents had dogs, the portion of the

4. circle graph representing the response "dogs" would be exactly -
--Select--- of the area of the circle. The portion of the
circle graph that represents the percent of respondents who had
dogs is ---Select--- .
From the graph, is it reasonable to estimate that more than 50%
of the respondents had dogs?
Yes
No
–/2 AUFQR1 1.2.023.
The following line graph shows the total student loan debt, in
billions of dollars, in the United States for selected years.
ℹ
(a) Between which two years did total student loan debt first
exceed $1 trillion? (1 trillion is 1,000 billions).
2011 and 2012
2012 and 2013
2013 and 2014
2014 and 2015
2015 and 2016
2016 and 2017
2017 and 2018
2018 and 2019
2019 and 2020
(b) In what year was total student loan debt approximately $1.4
trillion?

5. –/1 AUFQR1 1.2.P.003.
Estimate the number of raspberries in the following photo. (See
Example 3 in this section.)
ℹ
–/2 AUFQR1 1.2.P.007.
The circle graph shows the distribution of blood types in
humans. (See Example 7 in this section.)
ℹ
(a) Which blood type occurs most frequently?
Type A
Type AB Type B
Type O
(b) Which blood type occurs least frequently?
Type A
Type AB
Type B
Type O
–/2 AUFQR1 5.4.001.
Which of the following scatter diagrams suggests the following
conclusions?
ℹ

6. (a) strongest positive linear correlation between the x and y
variables
graph a graph b graph c graph d
(b) strongest negative linear correlation between the x and y
variables
graph a graph b
graph c graph d
Copy the link https://goo.gl/ZAQK2B. This will direct you to a
document from which you can access spreadsheets that may be
useful for checking your work for the exercise.
Two friends are to share a pizza that is one-third cheese, one-
third pepperoni, and one-third green pepper. To Zelda, the
cheese part is worth $12, the pepperoni part is worth $4, and the
green pepper part is worth $2.
(a) What is the value of the pizza to Zelda?
$
(b) For Zelda to feel that she has received a fair share of the
pizza, the value of her portion must be at least how much?
$
Suppose the pizza is cut in such a way that she receives one-
third of the cheese part, one half of the pepperoni part, and none
of the green pepper part. What is the value of this portioning to
Zelda?
$
Is this a fair share of the pizza to Zelda?
Yes
No

7. Home
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Copyright 2020 Cengage Learning, Inc. All Rights Reserved
Running Head: EXCHANGE RATES DISCUSSION
1
EXCHANGE RATES DISCUSSION
12
Title: Exchange Rates Discussion
Econ 460
2020/04/23
Flexible rate definitions
There is a wide variety of exchange rate system that has

8. dominated the currency and exchange market. In this case, the
fixed exchange system is the rate that has the official or
monitory authority, and their forces do not at any given time to
determine it. There is only a small deviation that emerges from
the fixed value possibility. In the entire exchange system, a
foreign central bank stands to buy and sell the currency at a
fixed price. Common virtue of this kind of exchange is used in
the renowned gold standard system, where countries commit
themselves in the free conversion of currency into goal gold at a
fixed price. In this case flexible rate, sourcing of exchange rates
is determined by the global supply and demand In the currency
exchanges. In other words, there is a high possibility of these
prices determining the rapid change that is not pegged nor
controlled by the central bank. In a different context, when
fundamental bank steps in as the regulating agent, there is a
high possibility of having domestic currency affected and
limiting the fixed exchange rates parameters of a county,
business, or an organization that depend more on the exchange
curve. The rate of flexibility is depicted by two regimes,
namely pure floating and managed floating system. Ideally, pure
floating exists when a flexible exchange regime is not official
and, more so, does not rely much on purchase and sales of
currency. Alternatively, the floating government is those
flexible exchanges that are defined by the level of intervention
and the current situation of trade. A floating exchange has rates
that re in line with the national set of values in the forex market
based on the supply and chain demand that relate to the
currency (Alicia Tuovila, 1983).
On the other hand, the international monetary fund takes a
different approach to the currency prices ad relative economic
strength. It's an organization that has been able to diverse it
powered an influence on over one hundred and eighty-nine
countries, working collectively to foster global monetary
corporation and, importantly, secure financial stability
structures. Compared to the fixed exchange rate, IMF is an
insight into the global corporation that lays a major role in

9. insecurely international trade in a great way. It was established
in the year 1945, and forth it has been in the front line of
security economic growth and reducing poverty in various parts
of the world, which has been highly affected by exchanges by
the global exchange rates and international mode of payments.
Comparing the two approaches, the primary purpose of having
the international monetary fund is ensuring stability and
accountability in international funds. Its creation was conveyed
at Bretton Woods to carry out the processes of regulating
currency amongst the member countries. Its role was a bit
different from a fixed system because it had the power and set
of enhancing international stability. It used loans and balances
of payment approach to regulate and closely monitor enormous
powers in the entire international community. Specifically, it
laid down policies that empowered the economy in third world
countries. It was easily propelled by the economic level and
scales of marketing in efforts to develop the countries economy.
Unlike the process in exchange rates, the IMF program has
remerges approaches that that official enabled implementing
strategies that rated the economies of the member states in a
great way. Through the use of standard code and principal, the
fine was a close partner to member states and bans in the world.
These policies and regulations enabled a fine way in the market
and infrastructure that foreseen development and transparency
aspects. Through the enactment of monetary financial policy,
government structures, and economist who depended on this
trade had a strong outcome that promoted present and future
economic development. (Cory Mitchell, 2014).
Nevertheless, the balance of payment comes along with payment
and regulatory challenges since they are part and parcel of the
current coming account. This rate affects international trade as
well as the mode of payment in the domestic market product.
To reduce the massive effect of balances of payment, from a
professional perspective, the best approach is dropping it and
suffering it's the exchange market. Several considerations
should be clearly outlined in the current balance of payments

10. account. Fist, one should consider primary and secondary
income flows. This consideration puts all the factors of
production into account and current production parameters. It’s
thee critical to negate and operate in the absence of balances
mode because f he persistent define that does not have a self-
correct share of the gross domestic product. If the organization
opts with a balances approach, there is an anticipated event of
having a reduced economic growth realization and trade-off
picks. In such a situation, there is an economic recession that
makes it hard to have a strong growth because it begins to fall
quickly. In the levels of human capital investment, it creates a
no price competitiveness that discourages experts and goes
ahead, worsening the reputation and reliability of having a wide
scope in the existing market. By default, the process ignores
the value of global alteration because of the reduced
shareholding and minimum economies of scale. The capacity of
having an international standard of payment is based on the
insight given to the autonomy in the domestic market. This
gives the dimension I which values of exchange should be
deterred from deflating demand, which reduces consumer
spending and the entire growth rate. In an evaluation process,
the change in import compared to change in the natural income
gives a clear indication of the marginal propensity to import and
standard mode of payment (Glance y, 2020).
To this extend, members of the public have a special interest in
the shared interest of a flexible exchange rate. This goes to the
extent of discussing the regime and rates on which the currency
has attained at a given scales of economy. This discussion is
enshrined in the flexibility merits and economies condition such
as currencies, prices of commodities, and focus of demand and
supply in the market. This consideration and demarcates
between flexible and variability of exchange rate system. It's a
fundamental strategy that helps in establishing problems that
have been undervaluation and overvaluation deficits in the
system. It automatically changes interventions in the
depreciations that correctly balance all the payments. Factors of

11. rates allow equilibrium that surpasses under floating rate and
appreciates external balances. It also monitors the promotion of
the growth of multilateral trades in the rapid adoption of
policies that helps in achieving domestic economic stability.
Investors can identify exchange rates in a large fluctuations
rate, which does not undervalue currency and regimes in the
rating system. Analyzing exchange rate regimes and discussing
the scope enables the public to have individual freedom and
have a quick in accessing balances of payment because of the
automatic revaluation of currencies. It’s also within the merit of
the public to have this argument in the instability and
dampening of effects in the foreign trade. The wide spectrum
within establishing this discussion in public will have stable
factors that will coordinate Marco's policy and fix economic
disbranches. Besides that, the fear of devaluation reserves
initializes this discussion for the outlined purpose of public
interest (Ken, 2017).
Business and organization have adopted a single currency
within a national frontier have extensively that operate in the
realized an added advantage in the process of economies
monitory and unification of balanced development. This has
competitive advantages that increase the domestic exchange rate
and currency; this achieves a sustainable inflationary growth of
countries' domestic product. One of the advantages of this
feature is the fact that it eliminates all exchange rates and
fluctuations. Small scale businesses are the majority who suffer
from this union of a currency compared to multinationals. It's
also an appreciated devaluation procedure that enables
stakeholders to devalue their national currency in achieving a
competitive and stable market. Taking into account, it engages a
collective autonomous monetary policy that set interest rats for
the euro area sans states that can adopt a fine-tune in the
respective national economy. The rate of competency and prices
of transparency is activated by encouraging firms and efficiency
in a rate of competencies in a single currency area. It also

12. extends economic integration in an arrangement amongst
nations that are typical include reduction and elimination of
business barriers and coordination of monetary and fiscal
policies. It's important to take note that integration reduces the
site of trade in countries where trade has been based on social
policy and fiscal regulation (Milton Friedman, 2019)
A flexible exchange rate outlines the stages that enable
producers in different countries. Trading units and free trade
area can use flexible exchanges in getting an integrated
economy and region to reduce trade barriers and agree on the
stipulated focal policies of interest. For instance, the European
Union have played secured a complete economic integration that
enables connecting to a series of available market and system.
The advantage that comes along with this integration is a
reduced cost of capital and trade services that has effectively
and efficiently caused a greater purchasing power. Employment
opportunities, on the other end, tend to have a leading capacity
of realizing expansion and technolo gical sharing in the entire
system. The value addition simplifies profit consumption
because of the magnitude power of a flexible exchange rate. On
the margin cost of production, it's at the best of corporate
financing and accounting production that makes all products in
an additional unit. Quantity change and economies of scale will
roll out a production concept in rate management per unit
margin of revenue. The integration of the marketing concepts
has a flexible exchange rate of variable and changes based on a
production level of producing country units and variable cost.
The nature of flexibility has promoted a globalization market
through an applied disillusion with sales and a saturated and
constituted foundation. This is a powerful drive that has
established a force technology in proletarian zed impoverished
commercial systems (Thirlwall, 2018).
Fixed rates system and flexible monetary rates
There is a clear and concise difference between fixed-rate
system and a flexible exchange rate. These differences are
based on rates and broad governance approaches. In addition to

13. that, the exchange system is determined by forces of demand
and system scopes as afar as supply and demand are concerned.
In a point of argument, a fixed rate has enhanced national
polices that suites the intensions standard when regulating the
currency. As a result, hi gates in the country and member states
have enhanced an increase in the current relative nations though
an offer to lower interest rates. Surveillance of political and
economic stability has, in many ways, caused a shift in demand
for goods and services in a country. This form of surveillance is
caused by prime factors and currency valuation methodologies
that are involved in the rate of monetary rate. In a global
currency of value, foreign investment increase foreign
investment and its relative value. This growth enables the
achievement of successful balances and accompanying
inflations. Favorable numbers of countries have activated
balances of trade and achieved a greater value of import and
export. This has led to the international growth of trade and
foreign exchange. Alternatively, a flexible exchange rate has
always been a limiting factor towards having a notions currency
in various aspects such as regional systems. Potential rates
having an extended monetary policy are turned down because of
the high inflation and exchange rate regime. Under this
category exchange rate is caused by a balance change that
prevents occurrence and persistence large current account and
their surpluses distribution in the supply curve. Taking a close
comparison, national monetary systems steps in as an absence of
a centralized institution that stands as a barrier control system
by the value of its rates and further analysis. This raises a
question on stability and its rate of effectiveness; flexible
exchange does not support priories automation of the system.
The exchange rate is only directed to inflation, and in a lance,
this makes it inconsistency and current account deficit and
surpluses pressures (Victor A. Canto, 2019).
Flexible exchange rate and its instability
In consequence, flexible rates have caused a rise in the schemes
of demotic investors in their inflation and therefore causing

14. sufficient compensation. Ideally, a foreign portfolio causes a
loss and depreciation condition to investors. This challenge
causes the nature of monetary disorder because of unfounded
acute disorders and exchanges. The ill is caused by a massive
devaluation and assertions that result in an unstable condition
of exchange. The argument of attributing an attributing system
in international transactions proves this. Besides, those flexible
rates come along with national economies policies. The
economic policy has a governance parameter that covers setting
levels of taxation and government budget. The measure of
reliance on a fixed rate as the natural ordering things causes an
economic scale and fiscal policy. These linked economics
policies are regulated by the government agency or the central
bank as a measure of uniformity and covering international
trading policy and economies exchange. The flexible exchange
has a shortcoming because of the fiscal stances and corporate
interest rates that have already been fixed, thus standing in the
same position.
In that regard, flexible rates have some instability that reduces
their ability in the currency and world of trade. Canadian
foreign exchange has a monetary policy that is one of the
limiting factors that are associated with this autonomy. Besides
that, the exchange rate is also at high risk in the exchange rate
system. This downtime is characterized by flexibility and
excessive volatility, and the term underlying fundamental
implies. The chosen exchange rate policy influenced by the
stated dynamics on the internal and external rate of policy is a
typical rate of a flexible system. The absence of balance
payment constraints has fostered the pursuit of domestic
economies of scale and pursuits of an inimical long run of the
exchange rate. These values have a negati9ve implication in the
Canadian foreign exchange rates and flow of their economy
(Will Kenton, 2010).
Reduction of international trade and exchange rate
In context to Canadian foreign exchange, the county has
experienced a lower dollar, which has enabled to reshaping of

15. their countries economy. Nevertheless, over the years, the
exchanging has reduced in a plummeted value. This change has
been experienced in the last decades, resulting in a lower cost,
which has taken a poor economic shape. Businesses and
organizations have been cautioned to examine factors of
production as one way of ensuring that industries experience
tremendous growth. Compare to a country such as the United
States; Canadian has limited product and services exchange
rates whose result end up having a reduced international
business affair. Importantly, the government agency has taken a
step further to revive the economy. Leading investment and
stagnant exporting firms have been encouraged to diverse more
in creating revenue sources and carrying international business.
This are some of the procedures that have enabled the company
to form initiatives that will improve business interrelation.
Advanced technology has also influenced the government to
build responsive measures that will raise the filled international
trade since the county gross domestic product cannot be
stabilized by the internal market its exchange rate.
Destabilizing speculation and exchange rate flexibility and
suggestion
The rate flexibility and the curve of the international monetary
fund have been faced by outlined standards and conjoined with
opponents. The price of destabilization speculation has directly
identified concepts that are empirical in the foreign exchange
market. Besides, this act as a hindrance to destabilizing factors
in the entire market. The speculation is initiated by
identification and policy monitoring that and resolve the
importance of welfare and issues that give a scope tat present
the foremost phenomena in building a motive based rates and
systems. Ideally, setting aside all negative speculation has
acted as a building block that has initialized purchases and sales
of foreign exchange in Canada based on future prices. A county
needs to consider time series of costs if they want to have a
standard rate and consistency in the empirical of flexible rates.
Evidence of this is the increased exchange rate of vitality that is

16. presented in more than one-dimensional. Lack of strict adheres
to the policies and inadequate approach to destabilizing
speculation has caused Canada a great monetary deal (Glance y,
2020).
Nevertheless, professional handling of this issue can play a
significant part in restoring the international monetary fund into
a standstill position. One of these measures is considering better
ways of supporting emerging trends alongside the policy of
associated member countries. Practices measures such as
increasing the shareholder will act as security when nations
have indulged in crises of funds. Having a progressive avenue
and adopting a multilateral system will enable developing
countries to experience more magnificent moments in progress
and relevant effective methodologies. Before borrowing funds
and leading an intended framework, it's within the confined f
rate flexibility to have a financial analysis of sustainable
growth, which is a progressive instrument in business approvals
and rates assurance. A typical application of a country that has
experienced an aggregated attempt to slow economic growth is
the liberation of the British zone and its associated block.
Increasing the flexibility rate of licensed operators in the
struggle of having a sustained, flexible rate is based on mobility
and the hidden capability of having a long run on averages and
total cost on a country. Incremental in cost and complete change
analysis will enable sustained production, demand, and equity
in levels of management (Alicia Tuovila, 2018).

17. References
Alicia Tuovila. (1983, May 1). The globalization of markets.
Retrieved from https://hbr.org/1983/05/the-globalization-of-
markets
CORY MITCHELL. (2014, December 16). Floating exchange
rate definition and history. Retrieved from
https://www.investopedia.com/terms/f/floatingexchangerate.asp
Glance y. (2020, January 27).
Balance_of_payments_problems_and_policies. Retrieved from
https://www.economicsonline.co.uk/Global_economics/Balance
_of_payments_problems_and_policies.html
Ken. (2017). Single currency: Pros a& cons. Retrieved from
https://kokminglee.125mb.com/economics/singlecurrency.html
Milton Friedman. (2019). Flexible exchange rate. Retrieved
from https://policonomics.com/flexible-exchange-rate/
Thirlwall. (2018). Essay on the International Monetary Fund
(IMF). Retrieved from https://www.bartleby.com/essay/The-
International-Monetary-Fund-IMF-FKCGT8RAVC
Victor A. Canto. (2019). Flexible exchange rate. Retrieved from
https://www.sciencedirect.com/topics/economics-econometrics-
and-finance/flexible-exchange-rate
WILL KENTON. (2010, February 25). What is economic
integration? Retrieved from
https://www.investopedia.com/terms/e/economic-integration.asp

18. I accept your topic. You will present various arguments for and
against fixed rates and arguments for and against flexible rates.
Very nice idea to discuss the Canadian experience to assess the
argument that speculation is destabilizing. You have to decide if
you want to discuss the Optimal Currency Area. I think that is
not the focus of your paper. I think you want to consider a
country, such as Canada, which is not part of a group like the
Euro area. Some economists believe that flexible rates for a
country like Canada is the only feasible policy: that is, fixed
exchange rates are just not feasible in a world of high capital
mobility. I did not understand your first section. I haven’t heard
of spectral exchange system. I don’t know why you want to get
into public attitudes toward exchange rate systems; for the most
part the public doesn’t understand the issues and doesn’t vote
on the alternatives (except in the unusual case of the euro,
where the Greek public decided to stick with the euro rather
than leave the euro and go back to the drachma).
How to Write a Good Paper
1. The ability to write a good paper is one of the most important
skills that a college graduate can bring to the job market. A
more immediate benefit is that it can raise your grade in this
course.
2. A paper should address a well-defined question, bringing
logical arguments and factual evidence to bear in answering that
question. You should assume that the reader is not very
familiar with your topic area, and therefore you need to describe
some background material to put your question in context. It

19. may take a few paragraphs to define the question precisely. The
body of the paper presents the logical arguments (and perhaps
some definitions of terms) and the evidence supporting or
casting doubt on the statements you make. The final paragraph
should review the arguments that you have made and should
restate your main conclusions (with appropriate qualifications).
Below I will give some examples of how to frame the question
of your paper.
3. The last page of your paper should be a list of references.
You should refer to these references in the body of your paper,
sometimes giving the page number when you are citing a
particular fact or idea. Feel free to list the assigned books and
articles among your references. I expect you to be familiar with
the assigned readings that relate to your topic.
4. Examples of paper topics and possible ways to approach
them:
a. Lessons from the xxx crisis. You would describe the events
leading up to the crisis, then the unfolding of the crisis, and
then the consequences of the crisis. What could have been done
differently (and by whom) to avoid or ameliorate the damage
from the crisis? You could choose one of the crises described in
the Gerber book, or you may choose another crisis. You may
define the crisis as you choose; for example, the Euro Crisis
could be approached from the point of view of one or another
country, or it could be taken as a whole. Similarly for the
Latin American Debt Crisis of the 1980s.
b. The case for flexible exchange rates. Milton Friedman wrote
a classic paper 1953 advocating flexible exchange rates. I have
posted a paper by Harry Johnson 1969 and a paper by Dellas
and Tavras 2017, both of which deal with Friedman’s
arguments. You could take this topic in various directions.
You could put the argument in historical context of the Bretton
Woods system and explain how flexible rates would have made
that system work better. Or you could consider what individual

20. countries should do in the present world. In a world of high
international capital mobility, are flexible exchange rates the
only solution? What would a country have to do to make fixed
exchange rates work?
c. What is an Optimal Currency Area? You could describe the
concept, as presented by Robert Mundell (1961) in a paper I
have posted on Blackboard. You could explain whether a
particular country group constitute an optimal currency area;
the European Union or the Euro area countries are examples,
but you could consider whether the different regions of the
United States should have their own currencies. The paper
would explore the advantages and disadvantages of different
arrangements.
d. Which types of countries should have open capital markets?
In particular, should less-developed countries, or emerging
market countries open their capital markets to free movements
of international capital? Why or why not?
e. Financial regulation policies for individual countries. How
should banks and other financial institutions be regulated?
What failures of regulation (or its enforcement) contributed to
financial crisis? You should indicate what country or type of
country you are considering in answering this question.
f. What role for currency boards? How do they work? Where
have they been used? Is this an arrangement that makes sense
for some countries? Why have they failed in particular cases?
The Argentine Currency Board of 1991-2001 is a possible case
study. What went wrong? What should the Argentine
authorities have done differently?
g. What caused the Great Depression? I posted two papers on
this topic, one by Christine Romer, the other by Peter Temin.
See Lecture 6 on the Great Depression.
5. Grammar and style. Please run spell-check on your paper.
The following common grammatical mistakes should be
avoided. (a) Run-on sentence. Example: Economists had a
naïve view of government, they thought government officials

21. were honest and competent. Here two sentences have been
separated by a comma, rather than a period (a semi-colon would
also be correct here). (b) Sentence fragment. Every sentence
has to have both a subject and a verb. (c) The contraction of “it
is” is it’s; the possessive form is “its.” (d) The verb affect is
spelled with an “a.” The consequences of an action are its
effects, spelled with an “e.” Example: The break-up with his
girl friend affected his emotional health, but its effects on his
diet were minimal.
Two notes on plagiarism. (1) Students sometimes commit the
crime of plagiarism without realizing it. Whenever you use the
words of another author, you must put the words in quotes and
give a citation to the source, including the page number. It is
quite permissible to include fairly long quotations from sources,
but of course most of the paper must be your own words. The
basic idea is that you must not present other people’s work as
your own. (2) When you list a source at the end of your paper,
it is assumed that you have actually consulted that source.
However, there is an exception to this rule: Suppose you are
reading an article by Jones, who cites an article by Smith, and
you want to acknowledge that the information or the idea that
you are presenting comes from Smith. Then you should list
Smith, but add “as cited by Jones.” Again, the basic idea is that
you must not present other people’s work as your own.
You must get your topic approved before writing your paper.
Please email me your topic by April 17; I will email back either
approving the topic or suggesting some modification. The topic
sheet should state the question or questions that you will
address in the paper, and it should list a couple of references
that you have already consulted.

22. Running head: OUTLINE 1
OUTLINE 5
Exchange rate
Student’s name:
Institution:
Date:
Outline
1. Flexible exchange rate definition
a) The first area of focus will be distinguishing the flexible
exchange rate form the international monetary funds.
b) The researcher will also be differentiating the flexible
exchange rate form the spectral exchange system which is often
conjoined with opponents of rate flexibility.
c) Absence of Balance of payments as a reason for interfering
with international trade and payments in light of the autonomy
of the domestic market
d) The research will discuss the extent to which the Public is
interested in the discussion of flexible exchange rates
("Exchange rate regimes: Flexible exchange rate," n.d.).
2. The researcher will discuss the various arguments for the
flexible exchange rates
a) Discussion of the merits of the single currency within a
national frontiers are discussed extensively such as
b) Facilitating competition among producers in different areas
on the nation
c) Integrating the economy into connected series of markets.
d) Simplifying profit computations among producers
(International Monetary Fund. Monetary and Financial Systems

23. Dept., 2017)
e) Integrating the national markets which compose the
international market into an international network of connected
markets.
3. The fixed rate system definition
Differentiating the fixed rate systems form the flexible
exchange rate
Arguments for the fixed rate will be discussed such as
a) Harmonizing the nation’s economic policies in accordance
with the international requirement of a single world currency.
b) Surveillance of national economic polices
c) International control of growth (Obstfeld, Ostry, & Qureshi,
2018)
4. Arguments against the fixed monetary rates
Failure to conform to the notion of single currency in various
aspects such as
a) Regions of the system’s ability to resist the integrative
pressure of the single currency is analyzed
b) In comparison to a national monetary system there is an
absence of a centralized institutional arrangement for effective
control of the system which is further analyzed.
5. Arguments against the flexible exchange rates
i. A discussion of the flexible exchange rate association with
acute monetary disorders (Obstfeld, Ostry, & Qureshi, 2018)
ii. A discussion of the association of flexible rate with disorders
of national economic policies.
iii. People overreliance on fixed rate as the natural order of
things
6. Instability of the flexible rate
Canadian foreign exchange rate will be the main area of focus
7. Reduction of the international trade ("Exchange rate regimes:
Flexible exchange rate," n.d.).
8. Destabilizing speculation
9. Suggestions for greater exchange rate flexibility
a) Proposals for reforming the current international monetary

24. fund
b) Removing political elements in the exchange rate.
c) Wider band proposal and the crawling peg proposal work in
practice through empirical studies will be discussed.
d) British economic endeavors to improve their balance of
payments will be discussed ("Understanding the History and
Disadvantages of a Fixed Exchanged Rate," 2004)
e) Aggregate British demand polies and their attempt to
overcome the slow economic growth.
References
Exchange rate regimes: Flexible exchange rate. (n.d.). Retrieved
from https://policonomics.com/lp-exchange-rate-regimes-
flexible-exchange-rate/
International Monetary Fund. Monetary and Financial Systems
Dept. (2017). Global Financial Stability Report, October 2017:
Is Growth at Risk? Washington, DC: International Monetary
Fund.
Obstfeld, M., Ostry, J. D., & Qureshi, M. S. (2018). Global
Financial Cycles and the Exchange Rate Regime: A Perspective
from Emerging Markets. DC.
Understanding the History and Disadvantages of a Fixed
Exchanged Rate. (2004, December 16). Retrieved from
https://www.investopedia.com/terms/f/fixedexchangerate.asp