What Are the Three Main Lessons on Crisis Learned from Early
What are the three main lessons on crisis learned from early developing countries in Latin America?
A) choosing the right exchange rate regime, the importance of contagion and the importance of the banking system
B) choosing the right real rate, the importance of following exchange rates, and keeping prices high to make the most profit
C) pegging exchange rates with Euros, keeping labor cost and wages low
D) maintaining money supply, avoiding tariffs, and increasing output
E) maintaining money supply, avoiding inflation, and increasing production
What are the main lessons economists learned from the developing country crisis?
What is the theory of Second Best?
"Developing countries should delay opening the capital account until the domestic financial system is strong enough to withstand the sometimes violent ebb and flow of world capital." Discuss.