Suppose, under fixed exchange rates, you find evidence of sterilization. What does it mean regarding the ability of central banks to follow independent monetary policies? What does sterilization imply regarding the causality between domestic credit and reserve flows under fixed exchange rates?

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The Answer of Suppose, under fixed exchange rates, you find evidence of sterilization. What does it mean regarding the ability of central banks to follow independent monetary policies? What does sterilization imply regarding the causality between domestic credit and reserve flows under fixed exchange rates?

Suppose, Under Fixed Exchange Rates, You Find Evidence of Sterilization