Can you think of reasons why a government might willingly sacrifice some of its ability to use

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Can you think of reasons why a government might willingly sacrifice some of its ability to use monetary policy so that it can have more stable exchange rates?

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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

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

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Question Posted: Oct 24, 2012 11:47 PM

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Can you think of reasons why a government might willingly sacrifice some of its ability to use

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Exchange rate stability may be preferred to monetary policy autonomy for several reasons First a cou...View the full answer

International Economics Theory and Policy

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