Starting with the solid line (curve A) showing the fluctuation in the exchange rate over the business cycle in the absence of speculation in Figure 20 2, draw a figure showing the fluctuation in the exchange rate over the cycle (under a managed floating exchange rate system and no speculation) with a policy of leaning against the wind that eliminates about one half of the fluctuation in the exchange rate

Question: Starting with the solid line (curve A) showing the fluctuation in the exchange rate over the business cycle in the absence of speculation in Figure

Starting with the solid line (curve A) showing the fluctuation in the over the business cycle in the absence of speculation in Figure 20.2, draw a figure showing the fluctuation in the over the cycle (under a managed floating system and no speculation) with a policy of leaning against the wind that eliminates about one-half of the fluctuation in the

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