Why does exchange rate overshooting occur? What determines its magnitude?

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Why does exchange rate overshooting occur? What determines its magnitude?


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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Economics

ISBN: 978-0273721307

7th edition

Authors: John Sloman, Alison Wride

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