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Why should the united state pursue given type of strategy

Assignment Help Macroeconomics
Reference no: EM131883885

Discussion: "Exchange Rates"

Respond to the following:

• Explain how countries manipulate their foreign exchange rate against specific other currencies. In your opinion, is this an economically beneficial strategy for a government to follow? Should the United State pursue this type of strategy? Why or why not?

• In a flexible-exchange-rate system, a country such as Brazil that has a persistently high inflation rate will experience regular depreciation of its nominal exchange rate with the U.S. dollar. Explain why this happens. Why might the Brazilian government like this system?

Reference no: EM131883885

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