Question

7) in April, 2017 I visited Ecuador, Briefly explain the reasons they use the US Dollar as their currency (2 pts) 8) Briefly explain two criticism of the IMF (4 points) 9) Briefly explain two of the four KEY ISSUES addressed by the World Bank (4 points)

Answer 1

1. $ 1.09 until May. Besim Tarret raised his money to condemn Trump's relationship with Russia. By the end of the year, the euro was worth $ 1.20.

Reason :-

The dollar, on the other hand, is for six reasons.

1.Bysimtas Janes was worried about the Greek debt crisis. This weakened the demand for the euro, the world's second largest option in the world currency.

2. The European Union attempted to stimulate the economic crisis through quantitative easing.

3. By the end of 2015, economic reforms slowed China's growth. It echoed back to the US dollar.

4. The dollar is heaven in the world crisis. Besimtarët bought some US Treasuries to avoid risks as the world disproportionately recovered from the crisis and recession in 2008.

5. Reformation Kinë n Japan bought vjedhin dollars to control the currency value. This allowed us to increase exports and reduce costs.

2. Include criticism from the International IMF. By lending to the state, the IMF converts loans in accordance with the implementation of certain economic policies. These policies include government borrowing reductions—tax increases and cost savings.

review :-

1.Credit terms:-

By lending to the state, the IMF converts loans in accordance with the implementation of certain economic policies. This policy:

* Reduced government loans-higher taxes and lower costs

High interest rates to stabilize the currency.

* Bankruptcy business.

* restructuring. Privatization, regulation, corruption and bureaucracy.

The problem is that these restructuring and macroeconomic intervention policies can exacerbate difficult economic conditions.

* In the Asian crisis like the IMF in 1997, many countries, such as Indonesia, Malaysia and Thailand, have tightened monetary policy (high interest rates) and tightened fiscal policies to reduce and strengthen the budget deficit. Exchange Rate. However, the policy was hit by a severe recession with very high unemployment.

In 2001, Argentina had to adopt a policy similar to fiscal restrictions. This can harm the economy by reducing investment in public services.

2. Criticism of Free Market IMF:-

In addition to criticizing the establishment of "free market reform", others criticized the IMF for overintruding. Believers in the free market say that the capital market is better without interference. They think that only efforts to influence the exchange rate will be aggravated. It is better to reach the currency at the market level.

There are also criticisms of the moral risk of excluding a country with a lot of debt. Encourage countries to borrow more because of their bond options.

3. The World Bank is an international anti-poverty organization. Provided development assistance to low and middle income countries. The World Bank aims to help people get rid of poverty by providing loans to the private and public sectors and providing advice and training.

Main theme:-

1. Accuracy of Support Terms:-

Some critics, especially the author Naomi Klein, believe that the lending and subsidies of the World Bank Group are unfair conditions that represent the broad interests of the bank's interests, financial strength and political doctrines (especially Washington). .

2. Resistance:-

The World Bank requires sovereign immunity from the countries in which it does business. Sovereign waivers are responsible for legal action. The exemption from this responsibility is proposed "to be used by the World Bank to avoid public responsibility and security." The World Bank can hinder understanding through the American power vector.