Question
Both the Fed and the European Central Bank are worried about inflation. But suppose the ECB is more worried and so raises European interest rates
Both the Fed and the European Central Bank are worried about inflation. But suppose the ECB is more worried and so raises European interest rates faster and higher than the Fed raises US rates. How would this change exchange rates?
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Macroeconomics
Authors: David C. Colander
10th edition
1259663043, 1259663048, 978-1259663048
