ECS-3200 Study Guide - Final Guide: Special Drawing Rights, Infant Industry Argument, Chaebol
Document Summary
Ecs 3200 econ of asia // final terms // new terms only. Dollarization: exchange rate system: the currency of another country circulates as the sole legal tender, or the member belongs to a monetary or currency union in which the legal tender is shared. 2. currency board: exchange rate system: based on an explicit legislative commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate, 100% foreign reserves in central bank. 3. fixed pegs: exchange rate system: fixed to single currency or a basket of currency. 4. managed floating: exchange rate system: exchange rate is generally floating, government is willing to interevene. 5. free floating: exchange rate system: market supply and demand, no government intervention. 1) small economies 2) open economies 3) highly concentrated trade 4) harmonious inflation rates. 1) large economies 2) closed economies 3) diversified trade 4) divergent inflation rates. 10. market (western) style: style of competition: many small firms compete with no government interference.
