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Q. Explain why in exchange rate-based stabilization plan may result in a real appreciation?
Answer: annotation 8 gives three reasons: first, persistent inflation because of say lagged wage indexation; second, be deficient in of credibility of the policy; and third, productivity shifts because of inflation reduction or efficient reforms.
You can work on this on your own, or with one partner. If there are more than two names on the submitted work, then I will give a maximum grade of 60 to each person listed on the
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