Imagine that domestic and foreign currency bonds are, Ask an Expert

Economics

Imagine that domestic and foreign currency bonds are imperfect substitutes and that investors suddenly shift their demand toward foreign currency bonds, raising the risk premium on domestic assets (Chapter 18).

Which exchange rate regime minimizes the effect on output-fixed or floating?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M91923164

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