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Under a fixed-exchange rate regime, why would the home interest rate be higher under a non-credible peg than under a credible one? (You should reference
Under a fixed-exchange rate regime, why would the home interest rate be higher under a non-credible peg than under a credible one? (You should reference to the spot FX equilibrium condition in explaining your answer.) Under a fixed-exchange rate regime, why would the home interest rate be higher under a non-credible peg than under a credible one? (You should reference to the spot FX equilibrium condition in explaining your answer.)
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