Explain How All Exchange Rate Regimes Must Deal with the Trade-Off

question 39

Essay

Explain how all exchange rate regimes must deal with the trade-off between rules and discretion, as well as between cooperation and independence. List and classified two International Monetary Systems based on these four quadrants.

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Definitions:

Performance

The execution, accomplishment, or carrying out of something such as a task, a contract, or a duty.

Accord and Satisfaction

A legal agreement between parties to settle a dispute by both agreeing to and performing new terms different from the original contract.

Original Debt

The initial amount of money borrowed or owed, before any interest or fees are added.

Implied-in-Fact Conditions

Terms and conditions in a contract that are not expressly stated but can be inferred from the nature of the agreement and the actions of the parties involved.