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1. How does restricting the mobility of capital impact policy effectiveness? Is this change a positive or negative for long run development? Use the IS-LM-BOP

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1. How does restricting the mobility of capital impact policy effectiveness? Is this change a positive or negative for long run development? Use the IS-LM-BOP framework in your answer, 2. Do you believe the formation of something like the Eurozone would be possible today? What types of countries might we expect to join? Would this be a stable outcome? Why or why

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