Unit 9 Beyond Bretton Woods 2 Exercises1.Answer the questions on the text:1)According to the article, what is the essence of “quantitative easing” restarted by the FedPrinting money to buy government bonds.2)Why is no one satisfied with today ’s international monetary systemBecause: Reason 1: Dominance of the dollar as a reserve currency and America ’s management of it fail to reflect the realities of the world economy and leave others vulnerable to America’s domestic monetary policy.Reason 2: The system has fostered the creation of vast foreign-exchange reserves, particularly by emerging economies, thus poor countries lend to rich ones and lose investment opportunities.Reason 3: Scale and volatility of capital flow render unsteadiness for emerging economies.3)What is “trilemma ” according to the textThe independence of domestic monetary policies, stability of exchange rate and perfect capital mobility can’t be realized at the same time. One must give up one factor to uphold the other two.4)What is the reason for a freer capital flow in these daysGlobalization as much as to the removal of restrictions.5)Why are countries unwilling to have their currency exchange rate to rise greatly and how do they control itBecause abrupt rise in exchange rate would cripple export and countries want an undervalued currency to encourage export-led growth, so they buy foreign exchange to stem the rise.6)How is “Bretton Woods 2”created, according to the authorEmerging economies are coping the behavior of China, keeping their exchange rate at a low level so as to maintain their international competitiveness, thus they have to be tied to US dollars. This phenomenon then results in Bretton Woods 2.7)What is “Triffin...