Assume that foreign inflation is 3 percent and domestic is, Ask an Expert

Economics

Assume that foreign inflation is 3 percent and domestic is 2 percent. How much higher/lower than the surrounding world’s nominal rate must the central bank mark their domestic nominal interest rate so that the real exchange rate will be unaffected?

Describe in detail why

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91572403

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