For much of 1994 and early 1995, Federal Reserve was pursuing a restrictive monetary policy. During Summer 1995, the Fed lowered interest rates. It is also expected that they will lower rates once again in December 1995 or January 1996. Briefly mention advantages and disadvantages of each system. Briefly discuss the impact of each of the following events on the value of the dollar.
Instability rises in Mexico due to uncertainty about the political leadership.