1
Q
What determines currency in these systems?
A
market forces determine the currency
2
Q
What are the benefits of floating exchange rate systems?
A
their gold and foreign currency reserves and the government doesn’t have to intervene
3
Q
What are problems with floating exchange rate systems?
A
currency can be volatile, making it difficult for exporters/importers to make decisions about the future and can cause large changes in macroeconomic variables, including growth
A Level Eco - Macro 2
flashcards
Decks in class (185)
# Cards
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Th4.1: Globalisation Characteristics5
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Th4.1: Factors Contributing to Globalisation6
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Th4.1: Impacts of Globalisation on Consumers5
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Th4.1: Impacts of Globalisation on Workers7
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Th4.1: Impacts of Globalisation on Producers4
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Th4.1: Impacts of Globalisation on Government4
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Th4.1: Impacts of Globalisation on Environment4
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Th4.1: Impacts of Globalisation on Economic Growth6
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Th4.1: Absolute and Comparative Advantage4
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Th4.1: Numerical Example One3
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Th4.1: Numerical Example Two4
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Th4.1: Numerical Example Three5
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Th4.1: Diagrammatic Approach One2
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Th4.1: Diagrammatic Approach Two5
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Th4.1: Diagrammatic Approach Three5
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Th4.1: Assumptions and Limitations of this Theory6
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Th4.1: Advantages of Specialisation and Trade8
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Th4.1: Disadvantages of Specialisation and Trade6
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Th4.1: Factors Influencing Pattern of Trade - Comparative Advantage6
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Th4.1: Factors Influencing Pattern of Trade - Emerging Economies4
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Th4.1: Factors Influencing Pattern of Trade - Trading Blocs and Bilateral Trading Agreements1
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Th4.1: Factors Influencing Pattern of Trade - Relative Exchange Rates2
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Th4.1: Terms of Trade6
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Th4.1: Factors Influencing a Country's Terms of Trade6
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Th4.1: Impacts of Changes9
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Th4.1: Types of Trading Blocs8
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Th4.1: ^^ Common Markets4
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Th4.1: ^^^ Monetary Unions6
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Th4.1: Trading Blocs - Advantages7
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Th4.1: Trading Blocs - Disadvantages11
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Th4.1: Trade Creation and Diversion14
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Th4.1: Role of the WTO5
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Th4.1: Possible Conflicts with the WTO7
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Th4.1: Reasons for Restrictions3
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Th4.1: Infant Industry Argument5
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Th4.1: Job Protection2
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Th4.1: Protection from Potential Dumping2
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Th4.1: Protection from Unfair Competition3
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Th4.1: Terms of Trade3
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Th4.1: Danger of Over Specialisation1
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Th4.1: Types of Restrictions1
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Th4.1: ^^^ Tariffs10
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Th4.1: ^^^ Quotas5
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Th4.1: ^^^ Subsidies to Domestic Producers3
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Th4.1: ^^^ Non-tariff Barriers5
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Th4.1: Impact of Protectionist Policies on Consumers3
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Th4.1: Th4.1: Impact of Protectionist Policies on Producers4
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Th4.1: Impact of Protectionist Policies on Workers3
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Th4.1: Impact of Protectionist Policies on Governments2
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Th4.1: Impact of Protectionist Policies on Living Standards2
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Th4.1: Impact of Protectionist Policies on Equity1
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Th4.1: Info3
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Th4.1: Balance of Payments3
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Th4.1: ^^ The Current Account1
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Th4.1: ^^ The Capital and Financial Accounts5
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Th4.1: Causes of Deficits and Surpluses1
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Th4.1: Short Term Causes - Deficits and Surpluses12
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Th4.1: Medium Term Causes - Deficits and Surpluses2
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Th4.1: Long Term Causes - Deficits and Surpluses7
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Th4.1: Reducing Imbalance3
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Th4.1: Demand Side Policies4
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Th4.1: Supply Side Policies6
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Th4.1: Expenditure Switching Policies10
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irrelevant Th4.1: Significance of Global Trade Imbalances9
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Th4.1: Exchange Rates6
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Th4.1: Exchange Rate Systems1
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Th4.1: ^^ Free Floating System7
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Th4.1: ^^ Managed Floating4
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Th4.1: ^^ Fixed System6
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Th4.1: Changes in the Currency4
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Th4.1: Factors Affecting Floating Exchange Rates7
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Th4.1: Government Intervention8
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Th4.1: Competitive Devaluation/Depreciation4
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Th4.1: Impacts of Changes in Exchange Rates5
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Th4.1: ^^^ Current Account of Balance of Payments6
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Th4.1: International Competitiveness3
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Th4.1: Measures of International Competitiveness6
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Th4.1: Factors Influencing International Competitiveness13
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Th4.1: Benefits of Competitiveness5
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Th4.1: Problems with Competitiveness5
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Th4.2: Absolute Poverty3
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Th4.2: Relative Poverty6
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Th4.1: Causes of Changes9
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Th4.1: Wealth and Income Inequality5
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Th4.1: Measurements of Income Inequality8
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Th4.1: Causes of Wealth and Income Inequality Within Countries1
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Th4.1: ^^ Wages4
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Th4.2: ^^ Wealth Levels3
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Th4.2: ^^ Chance3
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Th4.2: ^^ Age2
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Th4.2: Causes of Wealth and Income Inequality Between Countries3
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Th4.2: Impact of Economic Change and Development4
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Th4.2: Significance of Capitalism5
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Th4.3: Human Development Index8
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Th4.3: HDI Adavantages3
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Th4.3: HDI Disadvantages5
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Th4.3: Other Indicators2
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Th4.3: ^^ Inequality-adjusted HDI3
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Th4.3: ^^ Multidimensional Poverty Index4
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Th4.3: ^^ The Genuine Progress Indicator8
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Th4.3: Factors Influencing Growth and Development4
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Th4.3: ^^ Primary Product Dependency10
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Th4.3: ^^ Volatility of Commodity Prices3
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Th4.3: ^^ Savings Gap4
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Th4.3: ^^ Foreign Currency Gap1
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Th4.3: ^^ Capital Flight4
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Th4.3: ^^ Demographic Factors4
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Th4.3: ^^ Debt4
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Th4.3: ^^ Access to Credit and Banking3
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Th4.3: ^^ Infrastructure2
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Th4.3: ^^ Infrastructure2
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Th4.3: ^^ Absence of Property Rights3
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Th4.3: ^^ Non-Economic Factors6
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Th4.3: Strategies Influencing Growth and Development1
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Th4.3: Market-Oriented Strategies2
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Th4.3: MOS - Trade Liberalisation4
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Th4.3: MOS - Promotion of FDI7
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Th4.3: MOS - Removal of Government Subsidies8
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Th4.3: MOS - Floating Exchange Rate Systems3
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Th4.3: MOS - Microfinance Schemes6
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Th4.3: MOS - Privatisation5
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Th4.3: Interventionist Strategies2
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Th4.3: IS - Development of Human Capital5
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Th4.3: IS - Protectionism4
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Th4.3: IS - Managed Exchange Rates6
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Th4.3: IS - Infrastructure Development4
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Th4.3: IS - Promoting Joint Ventures with Global Companies2
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Th4.3: IS - Buffer Stock Schemes9
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Th4.3: Other Strategies2
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Th4.3: OS - Industrialisation11
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Th4.3: OS - Development of Tourism11
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Th4.3: OS - Development of Primary Industries3
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Th4.3: OS - Fairtrade Schemes8
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Th4.3: OS - Aid10
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Th4.3: OS - Debt Relief3
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Th4.3: The World Bank7
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Th4.3: International Monetary Fund (IMF)6
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Th4.3: NGOs5
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Th4.4: Role of Financial Markets5
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Th4.4: Role of the Financial Market6
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Th4.4: Market Failure in the Financial Sector2
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Th4.4: ^^ Asymmetric Information4
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Th4.4: ^^ Externalities3
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Th4.4: ^^ Moral Hazard5
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Th4.4: ^^ Speculation and Market Bubbles6
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Th4.4: ^^ Market Rigging4
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Th4.4: Role of the Central Bank7
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Th4.4: Financial Regulation5
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Th4.5: Public Expenditure3
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Th4.5: Types of Expenditure8
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Th4.5: Composition and Size of Public Expenditure6
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Th4.5: Impacts of Government Spending1
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Th4.5: ^^ Productivity and Growth4
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Th4.5: ^^ Living Standards4
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Th4.5: ^^ Crowding Out7
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Th4.5: ^^ Level of Taxation3
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Th4.5: ^^ Equality1
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Th4.5: Progressive, Proportional and Regressive Taxes7
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Th4.5: Impacts of Tax Changes2
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Th4.5: ^^ Incentives to Work7
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Th4.5: ^^ Tax Revenues7
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Th4.5: ^^ Income Distribution6
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Th4.5: ^^ Real Output and Employment5
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Th4.5: ^^ Price Level2
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Th4.5: ^^ Trade Balance4
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Th4.5: ^^ FDI Flows2
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Th4.5: Automatic Stabilisers and Discretionary Fiscal Policy7
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Th4.5: Fiscal Deficit and the National Debt3
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Th4.5: Distinction Between Structural and Cyclical Deficits9
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Th4.5: Factors Influencing the Size of Fiscal Deficits9
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Th4.5: Factors Influencing the Size of National Debts4
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Th4.5: The Significance of Fiscal and National Debts0
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Th4.5: Use of Policies2
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Th4.5: Reduce Fiscal Deficits and National Debts6
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UNFINISHED Th4.5: Reducing Poverty and Inequality7
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Th4.5: Changes in Interest Rate and Supply of Money7
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Th4.5: International Competitiveness4
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Th4.5: External Shocks6
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Th4.5: Transnational Companies5
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Th4.5: Regulation of Transfer Pricing5
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Th4.5: Ability to Control Global Companies5
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Th4.5: Problems Facing Policy Makers9
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International Competitiveness - Knowledge4
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International Competitiveness - Application8
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International Competitiveness - Analysis8
