Question: Suppose that a certain country is facing a widening current account deficit and rising inflation. As a result, its currency is starting to face downward

Suppose that a certain country is facing a widening current account deficit and rising inflation. As a result, its currency is starting to face downward pressure in the foreign exchange market. Explain what is meant by currency market intervention and the three main methods of intervention the country could use to try to protect the value of its currency.

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