Question
Even though we are living under the free floating exchange regime, the Bank of Korea (central bank) holds lots of U.S dollar asset as a
Even though we are living under the free floating exchange regime, the Bank of Korea (central bank) holds lots of U.S dollar asset as a foreign reserve. Why? Moreover, if the U.S interest rate decreases, the interest rate in Korea also decreases. This is known as the fear of floating. Why?
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Macroeconomics A European Perspective
Authors: Olivier Blanchard, Alessia Amighini, Francesco Giavazzi
4th Edition
1292360895, 9781292360898
