Why is it that in a pure flexible exchange rate system, the foreign exchange market has no

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Why is it that in a pure flexible exchange rate system, the foreign exchange market has no direct effects on the reserves in the banking system. Does this mean that the foreign exchange market has no effect on monetary policy?

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Financial Markets And Institution

ISBN: 9781292459547

10th Global Edition

Authors: Frederic Mishkin, Stanley Eakins

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Question Posted: Oct 16, 2024 03:00 AM

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Why is it that in a pure flexible exchange rate system, the foreign exchange market has no

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Financial Markets And Institution

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