Flaw in the current exchange rate system
Topic : ECONOMIC ISSUES UNDER DIFFERENT EXCHANGE RATE SYSTEMS
Group task: Sub-topic #1 (Chapters 6, 7)
Recent history has led many critics of the current exchange rate system to propose reforms to the system. Discuss the merits and demerits of the reform proposals. How would these proposals solve the problems with the current exchange rate system?
My task: look into how the exchange rate system currently works and find one flaw in the system.
Chapter 6&7 :International Exchange rate policies: Krugman, Obstfeld and Melitz.