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True/False/Uncertain - Briefly explain. No credit without an explanation (8 marks each). The Lender of Last Resort (LOLR) function of the central bank for the
True/False/Uncertain - Briefly explain. No credit without an explanation (8 marks each).
- The Lender of Last Resort (LOLR) function of the central bank for the banking sector is needed to prevent monetary union fragility.
- A country in a monetary union cannot use internal devaluation as an adjustment tool.
- Central bank independence is good for economic outcomes.
- The COVID-19 pandemic poses no problem for euro-zone monetary policy.
- The main problem with common euro bonds is that they cannot help against permanent asymmetric shocks.
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