=+prevent an interest rate rise that would appreciate the currency, the central bank must buy foreign exchange
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=+prevent an interest rate rise that would appreciate the currency, the central bank must buy foreign exchange currencies and expand the money supply. This action accommodates the initial wage demands with monetary growth, and the economy moves
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International Economics
ISBN: 9780132146654
9th Edition
Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz
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