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a) why is the home interest rate higher under a noncredible peg than under a credible peg? b) Is it more costly to maintain a
a) why is the home interest rate higher under a noncredible peg than under a credible peg?
b) Is it more costly to maintain a non credible peg than a credible peg? Explain
c) what the central bank of a country with fixed exchange rate regime has to do to avoid a currency crisis.
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