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Finance and international tread question - Essay Example

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(Author’s Name) (Institutional Affiliation) FINANCE AND INTERNATIONAL TRADE QUESTIONS Question 4 Abstract Coordination of international trade and financial policy is a topic about which there is a lot of debate and talk. Coordination of international trade and financial policy has been found to be facilitated by four sets of circumstances; these are: a) Coordination is most likely when it focuses on technical issues like central bank credits and swaps, or prudential regulation and supervision, as distinct from politicised and high-profile fiscal and monetary policies…

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Finance and international tread question

These rules and understandings can include informal routines to formal standards for what makes up acceptable conduct and that are sometimes exemplified in an organization, sometimes not. c) Coordination is likely when it is concerned with sustaining an existing set of behaviours and policies (when it is concerned with sustaining a policy regime) than when it is focused on altering policies. d) Monetary, financial, and macroeconomic coordination is most likely in the scenario of extensive comity among countries. Conflict over other matters, whether economic or not, stifles efforts to agree even on technical financial and economic policies (Krugman & Obstfeld 2003, pg. 56). This paper will discuss why the coordination of international trade and financial policy has been so difficult by looking at the reasons why it has proved to be such a challenge for most countries. ...
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