For more than a half century, a dozen African countries pegged their currency, the CFA franc, to
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a. Exchange rates are set by the forces of supply and demand. What did the analysts mean when they said that the CFA franc was "overvalued"?
b. What impact did intervention by the CFA central bank have on the CFA zone's monetary base, real risk-free interest rate, nominal interest rates, GDP Price Index, nominal and real GDP, current international transactions balance, and reserve assets?
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Related Book For
Managing in a Global Economy Demystifying International Macroeconomics
ISBN: 978-1285055428
2nd edition
Authors: John E. Marthinsen
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