Is this a smart long-run strategy for monetary stability

Reference no: EM133295073

Assignment:

1. Outline a set of conditions in which a central bank may not want to defend a peg. Is this a smart long-run strategy for monetary stability?

2. Some post-keynesians argue that we are generally in conditions akin to that of fiscal dominance over the long run. Given the types of policy behaviors observed in the U.S. and Europe from central banks, would you say they are right? Why or why not?

Reference no: EM133295073

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