What is the effect on central banks foreign reserve
Suppose the central bank of a small country is faced by a rise in the world interest rate, R*. What is the effect on its foreign reserve holdings? On its money supply? Can it offset either of these effects through domestic open-market operations?
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suppose the central bank of a small country is faced by a rise in the world interest rate r what is the effect on its
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1 under a gold standard of the kind analyzed by hume describe how balance of payments equilibrium between two
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