Discuss whether the intervention effort by the Thai government constitute direct or indirect intervention.
Discuss whether the intervention effort by the Thai government constitute direct or indirect intervention.
April 10, 2021 No Comments Assignment Assignment help• Discuss whether the intervention effort by the Thai government constitute direct or indirect intervention. • Discuss whether the intervention by the Thai government constitute sterilized or nonsterilized intervention and the difference between the types of intervention. • Which type of government intervention (sterilized vs. nonsterilized) do you think would be more effective in increasing the value of the baht? Once you choose one of the types, please justify your answer. • If the Thai baht is virtually fixed with respect to the dollar, what would happen to the U.S. levels of inflation? Will U.S. inflation rate go up or down, or remain unchanged? Please justify your answer. • What are some of the potential disadvantages for Thai levels of inflation associated with the floating exchange rate system that is now used in Thailand? • What do you think will happen to the Thai baht’s value when the swap arrangement is reversed later? • Do you have any other suggestions to Mr. Holt with regard to Blades’ business in this circumstance?
