Exchange rate policy
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Intros
Lessons
- 3 types of Exchange Rate Policies
- Flexible Exchange Rate
- Fixed Exchange Rate
- Crawling Peg
- Flexible Exchange Rate
- Exchange rate from demand and supply
- No direct intervention by central bank
- Central Bank can indirectly intervene
- Central Bank can indirectly intervene
- Crawling Peg
- Similar to fixed exchange rate
- Gradual appreciation or depreciation
- Minimize economic dislocation
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