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You have been hired as a consultant to the central bank for a small country that, for many years, has suffered from repeated currency crises

You have been hired as a consultant to the central bank for a small country that, for many years, has suffered from repeated currency crises and rampant inflation.  The country depends heavily on both the German and French financial and product markets.  




What type of exchange rate policy would have the greatest impact and reduce currency volatility between the client country and both Germany and France?

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