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question 1. According to the flow of balance of payment (BOP) approach to exchange rate determination, there are financial measures being put in place by
question 1. According to the flow of balance of payment (BOP) approach to exchange rate determination, there are financial measures being put in place by countries with managed floating exchange rate regime in order to cope with a deficit in its BOP.
In order to control those countries currency volatility and opt for stabilisation what will happen if they run persistent BOP deficits for a couple of years?
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