what does it mean that the optimum currency area is not the world but region?

Q: Why do currencies float? What causes currencies to appreciate? And what causes currencies to…

A: Currency is defined as anything that is widely accepted to have value as a medium of exchange for…

Q: What is Purchasing power parity Theory.

A: the Purchasing Power Parity (PPP) is an estimation that economists specialists use to look at the…

Q: What can international business people do to protect their companies from increasing inflation and a…

A: International business have to be very careful in making cost and business expansion decisions,when…

Q: What countries currently use the EURO?

A: To determine the countries that use euro as their currency.

Q: Why do some developing countries adopt currency boards? Why do others dollarize their monetary…

A: A currency board is a financial authority set up to give coins and notes convertible into an foreign…

Q: What would make a country decide to changefrom a common currency, like the euro, back to its own…

A: Dollarization: It refers to the process in which the local currency of the country has become…

Q: Over the past three decades, trade and investment between countries in East and Southeast Asia have…

A: The concept of a single currency for East and Southeast Asia is intriguing, and its feasibility can…

Q: Disadvantages of a single currency, for example the Eurozone

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: Is the Eurozone an “optimal” currency area and why, critically evaluate if possible.

A: An “optimal” currency area is characterized as one in which a single currency would create the…

Q: Can a numeraire last if its home country does not have strong economic added value -utside of the…

A: Currency of country is the monetary amount of money that is used to purchase goods and services in…

Q: Write a essay about why El Salvador should NOT adopt bitcoin as a legal tender and listen to the…

A: El Salvador has become the first country in the world to adopt Bitcoin as legal tender, a move that…

Q: All of the following are factors that cause supply and demand for currencies to change EXCEPT:   A.…

A: Gross domestic product: The total value of goods and services produced within a country' boarders…

Q: When a country's currency appreciates,

A: Currency of a country appreciate through two ways they are voluntary and involuntary.

Q: How much damage can Saudi Arabia do to the United States economy if they started selling their Oil…

A: US has been trading partner with Saudi Arabia since long. Saudi Arabia gets weapons and arms from US…

Q: China has been accused of currency manipulation . What does that mean? Does the government intervene…

A: The currency exchange rate is the rate at which domestic currency is exchanged with foreign currency…

Q: What are the two most plausible reasons why countries become international lenders? What two…

A: Countries become international lenders for various reasons, often driven by economic and strategic…

Q: Why should a savvy manager learn about foreign exchange?

A: Understanding the Importance of Foreign Exchange for Savvy ManagersForeign exchange plays an…

Q: what is a speculative attack on a currency. How does it work. Provide a real world example.

A: Investors that sell off a nation's currency in huge quantities in the hopes that its value will drop…

Q: Should the United States be worried if they lose the status of the reserve currency/?

A: Since the end of World War II, the US dollar has served as the international reserve currency. This…

Q: What would make a country decide to change froma common currency, like the euro, back to its…

A: Currency refers to a system of money used as a medium of exchange for goods and services in an…