This chapter has explained that one of the most economically destructive effects of exchange rate fluctuations can
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This chapter has explained that “one of the most economically destructive effects of exchange rate fluctuations can happen through the banking system,” if banks borrow from abroad to lend domestically. Why is this less likely to be a problem for the U.S. banking system?
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The problem occurs when banks borrow foreign currency but lend in domestic c...View the full answer
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