Question
Which of the following are legitimate reasons for a government to willingly sacrifice some of its ability to use monetary policy so that it can
Which of the following are legitimate reasons for a government to willingly sacrifice some of its ability to use monetary policy so that it can have more stable exchange rates?(Check all that apply from the following options)
A. Fixed exchange rates can lower inflationary expectations
B. Less volatile exchange rates are likely to improve the current account
C. International exchange rate agreements may decrease potential for "beggar-thy-neighbor" policy actions
D. There is no gain to having independent monetary policy anyway
E. Less volatile exchange rates may increase the volume of international trade due to reduced uncertainty
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