Suppose a countrys monetary authority decided it wanted to keep a fixed relationship between its domestic money

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Suppose a country’s monetary authority decided it wanted to keep a fixed relationship between its domestic money stock and its foreign exchange reserves. This would be a version of what is known as a currency board system, or something not very different from the old pre-1914 gold standard, with foreign currency in place of gold. 

How do you think the system could be implemented? What would it mean for domestic credit?

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