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Monetary policy is more effective than fiscal policy under a flexible exchange rate system if capital flows are imperfect and elastic to interest rates.
Monetary policy is more effective than fiscal policy under a flexible exchange rate system if capital flows are imperfect and elastic to interest rates. Justify your answer using ISLM-BP analysis.
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In the ISLMBP InvestmentSaving Liquidity PreferenceMoney Supply Balance of Payments analysis we can assess the effectiveness of monetary and fiscal policy under a flexible exchange rate system with im...
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Economics for Managers
Authors: Paul G. Farnham
3rd edition
132773708, 978-0133561128, 133561127, 978-0132773706
