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What Is Capital Mobility

What is Capital Mobility?

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Title: What is Capital Mobility?

Essay Details:

Subject: Business

Author: Robert H

Date: October 13, 2013

Level: University

Grade: A

Length: 3 / 732

Essay text:

A country must have such type of exchange rate which must absorb shocks. Exchange Rate is of two types: a. Fixed Exchange Rate: A currency is tied to only one currency. b. Floating Exchange Rate: A currency is tied to basket of currencies. 2. Good Monetary and Fiscal Policies: “Taylor Made Policies” it is assumed that government’s can control money mobility through good policies. This -Capital Mobility Hypothesis- can be Overstated or Understated 1. Overstated: When focus is on performance of money from public side i.e. “Demand side” & Supply side is ignored. 2. Understated: Currency has only one function and i...

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