In the late 1980s Canadian economists argued that the high interest rate policies of the Bank of

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In the late 1980s Canadian economists argued that the high interest rate policies of the Bank of Canada weren’t just causing high unemployment—they were also making it hard for Canadian manufacturers to compete with the United States.

Explain this complaint, using our analysis of how monetary policy works under floating exchange rates.

Figure 19-11

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Macroeconomics

ISBN: 9781464110375

4th Edition

Authors: Paul Krugman, Robin Wells

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Question Posted: Feb 28, 2024 04:01 AM

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In the late 1980s Canadian economists argued that the high interest rate policies of the Bank of

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Macroeconomics

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