Optimal currency peg Assignment Essay

Optimal currency peg Assignment Essay

Description/Paper Instructions

Optimal currency peg Assignment Essay

A currency peg is an international strategy that involves one country’s government or central bank fixing its exchange rate to that of another country’s currency. For example, since 1980, the Bahraini Dinar currency has been pegged to the US Dollar.

There are two main types of currency pegs: hard pegs and soft pegs. Hard pegs are fixed exchange rates that are not allowed to fluctuate more than a very small amount. Soft pegs, on the other hand, allow for more flexibility in the exchange rate.

The optimal currency peg for a country depends on a number of factors, including the country’s trade patterns, its level of economic development, and its political stability. In general, countries with high levels of trade with a particular country or region may benefit from pegging their currency to that country’s currency. This is because it can help to stabilize the country’s economy and reduce the risk of inflation.

The benefits of currency pegs

There are a number of benefits to currency pegs. These include:

• Reduced exchange rate volatility. Currency pegs can help to reduce exchange rate volatility, which can make it easier for businesses to plan and invest.
• Increased trade. Currency pegs can help to increase trade between countries by making it easier for businesses to convert their currencies.
• Lower inflation. Currency pegs can help to lower inflation by making it more difficult for governments to print money.
• Increased confidence in the economy. Currency pegs can help to increase confidence in the economy by making the currency more stable.

The drawbacks of currency pegs

There are also some drawbacks to currency pegs. These include:

• Loss of monetary policy independence. When a country pegs its currency, it loses some of its monetary policy independence. This is because the central bank can no longer use interest rates to control the money supply.
• Vulnerability to shocks. Currency pegs can make countries more vulnerable to shocks from the outside world. For example, if the country’s trading partner experiences a recession, the country’s economy may also be affected.
• Risk of speculation. Currency pegs can be vulnerable to speculation. If investors believe that the peg is likely to break, they may sell the currency, which could lead to a collapse of the peg.

The optimal currency peg

The optimal currency peg for a country depends on a number of factors, as mentioned above. However, there are some general principles that can be followed.

• The country should have a high level of trade with the country or region to which it is pegging its currency. This will help to reduce the risk of shocks from the outside world.
• The country’s economy should be relatively stable. This will help to reduce the risk of speculation.
• The country should have a strong central bank. This will help to ensure that the peg is maintained.

Conclusion

Currency pegs can be a useful tool for countries that want to stabilize their economies and reduce exchange rate volatility. However, there are also some risks associated with currency pegs, and countries should carefully consider their options before deciding whether or not to adopt a peg.

In addition to the factors mentioned above, there are a number of other factors that can affect the optimal currency peg for a country. These include the country’s political stability, its financial system, and its economic history.

The optimal currency peg for a country is not a static decision. It may need to be changed over time as the country’s circumstances change. Countries should regularly review their currency pegs to ensure that they are still the best option for their economy.

Optimal currency peg Assignment Essay

RUBRIC QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points:  Student failed to submit the final paper. 20 points out of 50:  The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50:  The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately.  Elements of the required response may also be lacking. 40 points out of 50:  The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples.  The answer is complete. 50 points:  The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples.  No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points:  Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points:  Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points:  References to scholarly sources are occasionally given; many statements seem unsubstantiated.  Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points:  Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented.  APA 6th Edition is used with only a few minor errors.  There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points:  Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented.  APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points:  Student failed to submit the final paper. 5 points out of 20:  The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors  10 points out 20:  The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20:  The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points:  The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points:  Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements.  The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER CLICK ON THE LINK HERE:  https://essaysolver.com/orders/ordernow You Can Also Place the Order In www.perfectacademic.com/orders/ordernow / www.essaysolver.com/orders/ordernow
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME] and Have It Done by Our PhD Qualified Writers!!

PLACE THE ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME] and Have It Done by Our PhD Qualified Writers!!

Why Work With Us!!

• Tired of getting an average grade in all your school assignments, projects, essays, and homework? Try us today for all your academic schoolwork needs. We are among the most trusted and recognized professional writing services in the market.

• We provide unique, original and plagiarism-free high quality academic, homework, assignments and essay submissions for all our clients. At our company, we capitalize on producing A+ Grades for all our clients and also ensure that you have smooth academic progress in all your school term and semesters.

• High-quality academic submissions, A 100% plagiarism-free submission, Meet even the most urgent deadlines, Provide our services to you at the most competitive rates in the market, Give you free revisions until you meet your desired grades and Provide you with 24/7 customer support service via calls or live chats.