How exchange rate regime matter for stabilization policy


Problem

1. Why is money nonneutral in the New Keynesian open-economy model?

2. How does the exchange rate regime matter for stabilization policy in the New Keynesian model?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: How exchange rate regime matter for stabilization policy
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