Unformatted text preview: the IMF was given the authority to intervene when an imbalance of payments arose. The system collapsed because the US experience difficulties in the 60’s. So in the early 70’s, Richard Nixon suspended the dollars convertibility to gold. 3.) a. The dollar will depreciate in comparison to the Japanese Yen. b. The dollar should appreciate and the Yen will depreciate due to a lack of foreign investment. c. The dollar will depreciate due to a lack of foreign investment. Part 2: 1.) The indian rupee depreciated $0.029 2.) a. The dollar value of the Yen in 2002 was $.008333. The dollar value of the Yen in 2006 was $.01 b. The Yen rose .017% over those 4 years. c. The dollar depreciated .017% over those 4 years....
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- Spring '14
- Aidan Quinn, open market operation, dollar value, Daniel Barrecchia, adjustable pegged FX