Why is a country limited in executing its own monetary policy under a fixed exchange rate system?

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Why is a country limited in executing its own monetary policy under a fixed exchange rate system? How is it limited under a flexible exchange rate system?

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Financial System Of The Economy Principles Of Money And Banking

ISBN: 9780765622464

5th Edition

Authors: Maureen Burton,Bruce Brown

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Question Posted: Nov 30, 2023 05:28 AM

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Why is a country limited in executing its own monetary policy under a fixed exchange rate system?

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Under a fixed exchange rate system a country pegs its currency to another major currency or a basket of currencies This fixed relationship between the ...View the full answer

Financial System Of The Economy Principles Of Money And Banking

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