Explain how payments adjustment would occur


Problem

Why are countries such as Bulgaria and Estonia giving up any monetary policy independence by adopting currency boards as replacements for their central banks? Explain how payments adjustment would occur if Bulgaria started in equilibrium and then experienced a large increase in exports due to a boom in Germany.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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International Economics: Explain how payments adjustment would occur
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