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valputin valputin
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8 years ago
Because many emerging market countries have not developed the political or monetary institutions that allow the successful use of discretionary monetary policy
A) they would be better off giving their central bankers the independence to use discretion, rather than take their discretion away through any nominal anchor.
B) they have little to gain from pegging their exchange rate to an anchor country like the U.S. or Germany.
C) they have very little to gain from an independent monetary policy, but a lot to lose.
D) they have little to gain from using a nominal anchor, because it would mean a monetary policy that is overly expansionary.
Textbook 
The Economics of Money, Banking and Financial Markets, Business School Edition

The Economics of Money, Banking and Financial Markets, Business School Edition


Edition: 4th
Author:
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Our course uses > The Economics of Money, Banking and Financial Markets
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MeelaMeela
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8 years ago
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valputin Author
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8 years ago
Correct
Our course uses > The Economics of Money, Banking and Financial Markets
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#3
8 years ago
Slight Smile Good luck with the rest
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