Exam 21: Optimum Currency Areas and the Euro

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Explain why even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows.

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The main reason is through diversification. If Norway's capital market is integrated with those of the EMU neighbors, Norwegians will invest some of their wealth in other countries while at the same time part of Norway's capital stock will be owned by foreigners.

Did the 1957 Treaty of Rome turn the EU into a truly unified market?

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A recent study by Andrew Rose of the University of California showed that, on average, two countries that are members of the same currency union

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Why did the EU countries move away from the EMS toward the goal of a single shared currency?

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Question 4

Describe the main provisions of the Maastricht Treaty of 1991.

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Question 5

Using the GG-LL framework, analyze the effect of an increase in the size and frequency of sudden shifts in the demand for a country's exports.

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Question 6

What is the purpose of the following figure?

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Question 7

Which of the following statements is TRUE?

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Question 8

Why does the LL schedule have a negative slope?

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Question 9

The monetary efficiency

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Question 10

Discuss the benefits and costs of joining a fixed-exchange area.

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Question 11

Which one of the following unexpected events ignited the 2009 euro crisis?

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Question 12

To join the EMU, a country must have a public debt below or approaching a reference level of

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Question 13

A key barrier to labor mobility within Europe is

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Question 14

Explain why the oil price shocks after 1973 made countries unwilling to revive the Bretton Woods system of fixed exchange rates. See also Chapter 19.

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Question 15

Under the EMS, Germany set the system's

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Question 16

The European Central Bank has its headquarter in

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Question 17

The ability of factors to migrate abroad

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Question 18

Under ERM 2 rules, the national central bank of an EU member with its own currency can suspend euro intervention operations

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Question 19

When Norway unilaterally fixes its exchange rate against the euro and leaves the krone

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Question 20

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Exam 21: Optimum Currency Areas and the Euro

Explain why even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows.

Did the 1957 Treaty of Rome turn the EU into a truly unified market?

A recent study by Andrew Rose of the University of California showed that, on average, two countries that are members of the same currency union

Why did the EU countries move away from the EMS toward the goal of a single shared currency?

Describe the main provisions of the Maastricht Treaty of 1991.

Using the GG-LL framework, analyze the effect of an increase in the size and frequency of sudden shifts in the demand for a country's exports.

What is the purpose of the following figure?

Which of the following statements is TRUE?

Why does the LL schedule have a negative slope?

The monetary efficiency

Discuss the benefits and costs of joining a fixed-exchange area.

Which one of the following unexpected events ignited the 2009 euro crisis?

To join the EMU, a country must have a public debt below or approaching a reference level of

A key barrier to labor mobility within Europe is

Explain why the oil price shocks after 1973 made countries unwilling to revive the Bretton Woods system of fixed exchange rates. See also Chapter 19.

Under the EMS, Germany set the system's

The European Central Bank has its headquarter in

The ability of factors to migrate abroad

Under ERM 2 rules, the national central bank of an EU member with its own currency can suspend euro intervention operations

When Norway unilaterally fixes its exchange rate against the euro and leaves the krone

Introduction

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: an Asset Approach

Money, Interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: an Historical Overview

Financial Globalization: Opportunity and Crisis

Developing Countries: Growth, Crisis, and Reform

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