Countries that fix the foreign exchange value of their currencies, while following a highly expansionary monetary policy, will

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When a country fixes the foreign exchange value of its currency, it is essentially surrendering control over its monetary policy, which can lead to an imbalance between the fixed exchange rate and the expansionary monetary policy. This can result in a loss of reserves and eventually force the country to abandon the fixed exchange rate or restrict the convertibility of its currency. Therefore, countries that adopt this policy are unlikely to be able to maintain both a fixed exchange rate and full currency convertibility.

Countries That Fix the Foreign Exchange Value of Their Currencies