In five pages this tutorial discusses floating and fixed currencies in this examination of inflation causes and how the global economy can be most effectively stabilized. Two sources are cited in the bibliography.
Name of Research Paper File: D0_MTecosta.rtf
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itself, concerned only about its own prices, goods and services, and government controls. That, of course, has changed today. Everything is intricately linked, thanks to globalization and world-wide markets. A
century ago, a failing economy in Asia would have had little impact on the United States, except for, perhaps, seeing more increase in the number of Asians coming into the
country. However, the Asian crisis of the late 1990s had a definite impact not only on the American economy, but also on the economy of the European Union. Goods and
services were no longer in as much demand in countries such as China, Japan and Taiwan, meaning inventory was stockpiled and multinationals lost a great deal of money.
The purpose of this paper is to discuss, in some part, how the world economy would best be stabilized. While answering this question depends
on what school of economics one would follow, some economists in print have discussed their own views, which provides enough information for a tutorial that can help lead the student
toward an answer to this question. The first step that a student needs to take in answering this question is to define
the problem. Weve touched on this somewhat above - namely, because of globalization, almost every economy is intimately linked with another. The student here can use a good example by
discussing the aforementioned Asian crisis and how it impacts other countries. However, stabilizing world economies is more complicated than simply discussing
aspects in terms of inflation, recession and booming economies. First of all, the student needs to note that much of the worlds price stability is set by Central Banks throughout