Sterilized intervention to defend a fixed exchange rate only works when there is perfect capital mobility.
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Q157: Under flexible exchange rates domestic monetary policy
Q158: If interest rates are set to maintain
Q159: High capital mobility reduces the scope for
Q160: Fiscal policy is undermined by fixed exchange
Q161: Devaluation leads to a permanent rise in
Q163: In an economy with a fixed exchange
Q164: When the central bank sells foreign exchange
Q165: The adoption of a fixed exchange rate
Q166: In an open economy with a fixed
Q167: In the short run, fiscal policy is
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