Some fast-growing poorer countries face a conflict between wanting to maintain a fixed exchange rate with a

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Some fast-growing poorer countries face a conflict between wanting to maintain a fixed exchange rate with a rich country and wanting to keep inflation low. Explain the logic behind this statement. Use the examples of Slovakia and China to illustrate your argument.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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International Economics

ISBN: 978-1429278447

3rd edition

Authors: Robert C. Feenstra, Alan M. Taylor

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