How does the exchange rate regime matter for stabilization policy in the New Keynesian model?

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How does the exchange rate regime matter for stabilization policy in the New Keynesian model?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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Macroeconomics

ISBN: 978-0134472119

6th Edition

Authors: Stephen D. Williamson

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