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What policy regimes are consistent with the free international flow of capital? What must policymakers give...

What policy regimes are consistent with the free international flow of capital? What must policymakers give up when adopting one of the available options? Name one benefit of free capital flows.

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Answer #1

ANSWER:-

Policies consistent with the free International flow of capital are:

Present and capital record convertibilty of outside cash:

  • If money is convertible then just speculations would be pulled in or elase everything will be constrained by the administration.

Organized commerce(free trade):

  • Trade ought to be free so cash changes happen easily.
  • Guideline laws for remote investments are expected to administer protections advertise from speculations.
  • Policymakers should free money from guideline to really coordinate to world markets. Speculations laws should not have disparities.

Benefits of free capital flow:

  • It is help in auto rectifying exchange shortfalls and granting countries  which are doing acceptable as far as improvement and made sure about speculation.

PLEASE UPVOTE.

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