=+17. We observed in the text that fixed exchange-rate systems can result not in absolutely fixed exchange

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=+17. We observed in the text that “fixed” exchange-rate systems can result not in absolutely fixed exchange rates but in narrow bands within which the exchange rate can move. For

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International Economics

ISBN: 9780132146654

9th Edition

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

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Question Posted: Oct 02, 2024 04:00 AM

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We observed in the text that fixed exchange-rate systems can result not in absolutely fixed exchange rates but in narrow bands within which the exchange rate can move. For example, the gold points...
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=+17. We observed in the text that fixed exchange-rate systems can result not in absolutely fixed exchange rates but in narrow bands within which the exchange rate can move. For
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=+how the transaction affects the central banks balance sheet and the money supply.
=+example, the gold points (mentioned in footnote 17) produced such bands under a gold standard. (Typically those bands were on the order of plus or minus 1 percent of the
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=+17. We observed in the text that fixed exchange-rate systems can result not in absolutely fixed exchange

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International Economics

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