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Fixing the exchange rate involves a welfare loss relative to the Ramsey policy. So, in the absence of commitment, expected welfare under fixed exchange rates may or may not improve. There is a tradeoff between credibility and flexibility, and the better choice depends on model parameters. 2 Dollarization and the Lender of Last Resort - 3 - The recent crises in emerging markets have underscored a crucial question: what is the role of exchange rate policy in the generation and/or prevention of those crises? Arguably, it is this issue that has provided the main impetus for dollarization proposals in developing countries.
In result of this situation, Prime Minister Jean Chrétien raised hypothetical questions to the Supreme Court of Canada in 1997 concerning the constitutional legitimacy of a unilateral declaration of independence in Quebec (Malcolmson & Myers, 2009, p.32). The first one questioned the legality of a unilateral secession of... ... middle of paper ... ...ce on clarity has paid off. Literary Review of Canada, 15(3), 7-9. Retrieved from http://proxy4.vaniercollege.qc.ca:2096/ps/i.do?id=GALE%7CA161077223&v=2.1&u=vaniercol&it=r&p=GPS&sw=w Dion, S., et al. (2000).