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Fairyland is a country with free financial flows which experiences frequent recessions. The governor of Fairy land's central bank is deciding whether to introduce the

  1. Fairyland is a country with free financial flows which experiences frequent recessions. The governor of Fairy land's central bank is deciding whether to introduce the fixed exchange rate regime or inflation targeting. If you were asked to provide an expert economic advice, what your advice would be? (4 marks)

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