Why are Economic Instruments considered better than Command and Control instruments for pollution control?: A very important question in environmental economics, this seeks to compare the traditional approach of command and control instruments and the new approach of economic instruments for pollution control. Although the command and control instruments are still widely used in developing countries, more and more countries are now adopting economic instruments. The most sought after example in the economic instruments is the European Union Emission Tr...

Better use of huge foreign exchange reserves: Foreign exchange reserves are foreign currency deposits and bonds held by central banks and monetary authorities, but also includes foreign exchange and gold, SDRs and IMF reserve positions. In a flexible exchange rate system, official international reserve assets allow a central bank to purchase the domestic currency to stabilize the value of the domestic currency if need arises. China tops the list with nearly $2.5 trillion, Japan with $ 1 tril...