Empirical Link Between Relatively Stable Exchange Rates and Low Inflation
The data from Figure 7.16 provides evidence that countries maintaining their nominal exchange rates within a narrow range against the U.S. dollar also tended to experience comparatively low inflation rates. This observation extends the findings beyond strictly fixed exchange rate regimes, suggesting that even managed stability can be associated with price stability.
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Introduction to Macroeconomics Course
Ch.7 Macroeconomic policy in the global economy - The Economy 2.0 Macroeconomics @ CORE Econ
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