Pros and Cons of Joining a Single Currency - Essay Writing - Economics Assignment Help

Assignment Task

Assignment topic:
-Essay that considers the pros and cons of joining a single currency and whether the Euro is an optimal currency area.

Questions:
1. Part a: Explain the pros and cons to nation of joining a single currency.
2. Part b: Explain using referenced research whether you consider the Eurozone to be an optimal currency area. 1,000 words excluding bibliography.

Assignment description:
- Needs to consider and cover followings:

-1. Floating - these change in value on a daily/hourly/minute by minute basis, and the things that determine the value of the ex. rate are SUPPLY and DEMAND for that currency on FOREX (foreign exchange market - where you go to get a different currency to your own)
-When do people demand a currency on Forex
(a) When a nation is exporting its products -
(b) when people are investing in to your country
-When do people supply a currency Forex
(a) When people are importing from abroad - you need to take your currency to the market (Forex) and it loses value /ex rate falls
(b) When investments leave your nation

-2. Dirty float

-3. Pegged/fixed
(a) With bands
(b) Fully fixed

-4. Currency union

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