Instructions to students: All questions are compulsory

Materials: 

Dictionaries are not permitted

TASK: EC3012 International Finance Assignment

Question 1:

a)Compare the effects of a devaluation according to:

1. The Monetary Approach to the Balance of Payments.
2. The Elasticities Approach  to the Balance of Payments.

b)Assess critically which assumptions are behind the main differences in the effects of a devaluation according to the two models.

 

Question 2:

Analyze the effects of a sterilized foreign exchange operation/ intervention according to:

a)         The Portfolio balance model.

b) The Fleming- Mundell model. After a monetary expansion, assuming imperfect

capital mobility.

 

Question 3: EC3012 International Finance Assignment

Discuss the following statement critically, displaying your knowledge of the two relevant models and by using equations where necessary:

“The Frankel interest rate differential model offers a more complete approach to the effects of a monetary expansion than the Dornbusch sticky price model”.

ORDER This EC3012 International Finance Assignment
NOW And Get Instant Discount

Read More :-

PGBM01 Financial Management And Control Assessment – Sunderland University UK.