Consider two countries with fixed exchange rate regimes in, Macroeconomics

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Consider two countries with fixed exchange rate regimes in

Question: Consider two countries with fixed exchange rate regimes. In one country, government authorities exert fiscal dominance. In the other, they do not. Describe how this affects the central bank's ability to defend the exchange rate peg. How might this difference in fiscal dominance affect the central bank's credibility?

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Macroeconomics: Consider two countries with fixed exchange rate regimes in

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