The International Monetary Fund (IMF) is often viewed as an international lender of last resort. When countries

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The International Monetary Fund (IMF) is often viewed as an international lender of last resort. When countries seek out loans from the IMF to alleviate banking and economic crises, the IMF often requires countries to maintain a fixed exchange rate. Why do you suspect the IMF pressures countries with large levels of foreign-denominated debt to maintain fixed exchange rates? Do you believe this is a good policy? Discuss possible alternatives.

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International Economics

ISBN: 9781319218508

5th Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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