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The domestic central bank increases the supply of money under a flexible exchange rate regimeLOADING..., leading to a depreciation of the nominal exchange rateLOADING.... If
The domestic central bank increases the supply of money under a flexible exchange rate regimeLOADING..., leading to a depreciation of the nominal exchange rateLOADING.... If the government had imposed capital controls before the increase in the money supply, would this have had any effect on the exchange rate depreciation? Explain your results, and comment on their significance. Part 2
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