According to some analysts,under a _____ regime,countries are limited in their ability to use monetary policy to expand or contract their economies by the need to maintain exchange rate parity.

Question

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Fixed exchange rate regime is characterized by a government's commitment to fix the value of its currency in relation to other currencies or a commodity such as gold, and maintain that fixity by buying and selling its own currency in foreign exchange markets. This constraint limits a country's ability to use monetary policy to manage its economy because any changes it makes to interest rates, money supply, or other measures affecting economic activity could lead to a change in the value of their currency, which would conflict with their commitment to maintain exchange rate parity.

According to Some Analysts,under a _____ Regime,countries Are Limited in Their