Question: I have a question about a current country, at this moment Venezuela is experiencing a process of hyperinflation. If the Central Bank of Venezuela reduces
I have a question about a current country, at this moment Venezuela is experiencing a process of hyperinflation. If the Central Bank of Venezuela reduces the growth of the money supply and inflation expectations stabilize, what effect would this change have on the real exchange rate and the nominal exchange rate of the Colombian peso with respect to the Venezuelan Bolvar? What economic mechanism would explain this effect?
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