Recovery, Pol Regime

Question 1

Bank acceptances

Answer 1

A means of providing financing for international trade by creating a short-term financial instrument that is traded. Foreign investors Allow to borrow in pounds on London money market

Question 2

Policy regime change definition

Answer 2

Changes in macroeconomic outlook dramatically

Announced by the government believed by the market because the government pursued as announced consistent

Question 3

In what sense does the valuation alone constitute a policy regime change

Answer 3

People observe that the government has changed its objectives defending banks

Question 4

Despite a slow growth of net exporter through what channel does devaluation contribute

Answer 4

Import substitution and hys

UnLike Tariff this effect applies to all tradable sectors

Question 5

Transmission mechanisms of the cheap money policy

Answer 5

Reduce cost of borrowing Allocation of savings into housing investment due to stabilise
and change inflation
Reduce costs of a repayment and increased demand for consumer durables

Question 6

Main objections to Temin

Answer 6

Intentional and rational

Question 7

broadberry devaluation Marshall Lerner

What estimate did he use for the extent of devaluation

Answer 7

1.75 3^
Redmond 13%
Pound became under valued