Question

Assuming the country is open to international capital flows, which of the following combinations of monetary and exchange-rate policies are viable? Explain your reasoning.
(a) A domestic interest rate as a policy instrument and a floating exchange rate.
(b) A domestic interest rate as a policy instrument and a fixed exchange rate.
(c) The monetary base as a policy instrument and a floating exchange rate.



$1.99
Sales0
Views76
Comments0
  • CreatedOctober 02, 2014
  • Files Included
Post your question
5000