James Tobin proposed a tax on these values to discourage short-term speculation. For 10 points each:
[10e] Name these values used to convert between international currencies. Many countries peg these values to the US dollar.
ANSWER: foreign exchange rates [accept forex rates]
[10m] A system developed at this international conference encouraged countries to peg their exchange rates to the price of gold. The IMF was created following this monetary conference named for a New Hampshire town.
ANSWER: Bretton Woods Conference [or United Nations Monetary and Financial Conference; accept the Bretton Woods system]
[10h] This theory predicts that the real exchange rate between any two currencies trends towards a constant in the long run. This alliterative theory is based on the idea that a consumer should have the same ability to buy a basket of goods anywhere in the world.
ANSWER: purchasing power parity theory [or PPP theory]
<Ethan Ashbrook, Social Science - Economics> ~20816~ <Editor: Athena Kern>