RSM100Y1 Lecture Notes - Lecture 11: Money Supply, Comparative Advantage
Document Summary
It"s (cid:271)e(cid:272)ause so(cid:373)e (cid:272)ou(cid:374)tries ha(cid:448)e a (cid:272)o(cid:373)parati(cid:448)e ad(cid:448)a(cid:374)tage i(cid:374) produ(cid:272)i(cid:374)g goods tha(cid:374) the others a(cid:374)d thus should trade so that both countries can benefit form them. There are lot of problems like government regulations, currency exchange issues. Countries trade only if they have excess resources of a certain good. How does a low canadian currenicy help the market . Monetary policy controls the money supply and the interest rates. To reduce tariffs and increase trade among its countries. They reduced the hassles involved in curreny exchange if they had a unified currency. How did germany and greece benefit form euro. Germany benefited as they can trade with reduced barriers to the other european countries while. Greece can borrow money form their countries with the german credit ratings. What is the problem now for germany and greece. The problem with germany is to bail out all the smaller countries form their credit problems and.
