Openness to trade is one factor that has been identified as determining whether a country is prone to sudden stops in capital inflow,…
Summary of key points:
· A fixed exchange rate and a flexible exchange rate each have its own advantages.
· A country should have the…
/publications/real-convergence-and-euro-adoption-central-and-eastern-europe-trade-and-business-cycle
Optimum currency area theory says that trade patterns and cyclical correlations are important criteria for whether a country should join a…