If we have high capital mobility and a fixed exchange rate regime, the authorities can run an independent domestic monetary policy.

Name: If we have high capital mobility and a fixed exchange rate regime, the authorities can run an independent domestic monetary policy.
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Question

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In a fixed exchange rate regime with high capital mobility, the authorities cannot run an independent domestic monetary policy due to the constraints imposed by the need to maintain the exchange rate peg.

If We Have High Capital Mobility and a Fixed Exchange