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September 25, 2006

Trade and Exchange Rates

"One of the fundamental tenets of free trade is that currencies should float -- or at the very least, move along with market forces." True or False? Explain.

Greg Mankiw discusses.

Posted by Dingel at September 25, 2006 11:22 AM

Comments

False, Hong Kong has fixed exchange rates and has minimal trade barriers.

Posted by: joseph at September 25, 2006 08:27 PM