The Euro has become a reserve currency held by foreign central banks. Suppose that some of these

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The Euro has become a reserve currency held by foreign central banks. Suppose that some of these banks held Euro reserves in the form of Euro notes kept in their vaults rather than in the form of government bonds. Would the international monetary adjustment mechanism be symmetric or asymmetric? Explain.

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International Finance Theory And Policy

ISBN: 9780134519548

11th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J Melitz,

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