A Lesson That Policymakers Should Learn from the Argentinean Experience

question 47

Multiple Choice

A lesson that policymakers should learn from the Argentinean experience with currency boards is:

• A) poor fiscal policies can undermine any monetary policy regime.
• B) a flexible exchange rate is always preferred to a pegged exchange rate.
• C) the only fixed exchange rate that works is the gold standard.
• D) they never work.

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Definitions:

Good-Natured Joking

The act of engaging in humor or jesting that is friendly, positive, and not intended to cause harm or discomfort.

Realistic Accuracy Model

A framework in social psychology that explains accuracy in personality judgment as arising from a sequence of processes: relevance, availability, detection, and utilization of behavioral information.

Manipulation

The action of controlling or influencing a person or situation cleverly, unfairly, or unscrupulously.

Detection

The process of discovering or identifying the presence of a particular entity or condition, often through observation or the use of specific tests.