How might restrictions on private financial account transactions alter the problem of attaining internal and external balance

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How might restrictions on private financial account transactions alter the problem of attaining internal and external balance with a fixed exchange rate? What costs might such restrictions involve?

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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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Question Posted: Oct 24, 2012 11:47 PM

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How might restrictions on private financial account transactions alter the problem of attaining internal and external balance

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Capital account restrictions insulate the domestic interest rate from the world interest rate Mo...View the full answer

International Economics Theory and Policy

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