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QUESTION

Suppose you are an advisor to the President of country with emerging market economy (i. small relatively poorer economy).

Suppose you are an advisor to the President of country with emerging market economy (i.e. small relatively poorer economy). She has asked you to evaluate the pros and cons of different exchange rate regimes. What, in your opinion, is the one biggest advantage and disadvantage, respectively, of each possible exchange rate system for an emerging country? What should the country pick and why?

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