How do developing countries typically manage to keep currencies pegged at values that are too high? Who

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How do developing countries typically manage to keep currencies pegged at values that are too high? Who benefits from such an overvalued currency? Who is hurt by an overvalued currency?

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International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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Question Posted: May 28, 2012 03:58 AM

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How do developing countries typically manage to keep currencies pegged at values that are too high? Who

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Such a situation is difficult to maintain because if the exchange rate overvalues the local currency ...View the full answer

International Financial Management

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