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Question 2 Some countries have chosen to join currency unions, such as European Union. This would imply sacrificing their own currencies in favor of using
Question 2 Some countries have chosen to join currency unions, such as European Union. This would imply sacrificing their own currencies in favor of using a common currency. a. What is the implication of this exchange rate policy for domestic monetary policy? Explain in detail. b. If a country in a currency union can set its interest rate independently, what can you say about the capital markets in this country? Explain in detail
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