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Unformatted text preview: (a) What are the bene&ts of maintaining a pegged exchange rate regime? (b) What are the costs of maintaining a pegged exchange rate regime? (c) Why has Chinese central bank been accumulating foreign exchange reserves? (d) Given low interest rates on Chinese holdings of US T-bills, could foreign exchange reserves in China be spent better? How? Discuss. (e) Could revaluation of Chinese currency signi&cantly help in the adjustment of current account imbalance in the US? 1...
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This note was uploaded on 01/28/2011 for the course ECON 304 taught by Professor Michaelpeters during the Spring '10 term at UBC.
- Spring '10