For a fixed exchange rate system to work, the government must be able to make tight budget
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“For a fixed exchange rate system to work, the government must be able to make tight budget and monetary policies stick from the outset.” Comment.
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A government that runs budget deficits and a lax monetary policy is unlikely to be able to maintain ...View the full answer
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Related Book For 
Foundations Of Multinational Financial Management
ISBN: 9780470128954
6th Edition
Authors: Alan C Shapiro, Atulya Sarin
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