online essay editor on Global Gulf strategy
please answer the following questions
Q1. Jordan has a flexible exchange rate regime. The demand for domestic goods and services is too strong. As a result, inflation is 9%, above the desired rate of 5%. What alternative policy actions could Jordan implement to bring the rate down? How will these actions affect the following macroeconomic variables in the short run: Price, Output, and Unemployment? What are the possible effects on the same variables in the long run?
Q2. The World Economic Forum (2014) report lists UAE’s ranking in twelve distinct categories that define a country’s ability to compete internationally. For each of these categories, give two UAE-specific examples or reasons to justify the high or low ranking assigned to the UAE.
Q3. In 2007, many observers expected that the UAE would revalue the dirham against the US dollar from AED 3.66 to about AED 3.40 per U$1. How would this change have affected UAE exports and imports? Would the change have lowered or increased UAE inflation? Why? At the end of 2008, the talk about an expected revaluation completely vanished. Why?
Q4. In January 2015, Switzerland started charging a negative nominal interest rate on selected deposits. What does a negative nominal rate mean? How might you relate the Swiss move to the international monetary policy trilemma, which states that a country can choose only two out of the following three options: stable exchange rate, free international capital mobility, and monetary policy independence.
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