Official intervention in the foreign exchange market does, Business Economics

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Official intervention in the foreign exchange market does

Official intervention in the foreign exchange market does appear to be a useful policy when overshoots take place in fragile circumstances.

a. What is an overhsoot?

b. Explain the exact form of this official intervention to counteract a specific overshoot.

c. What does official intervention do that makes it useful?

Please answer specific questions, not general concepts

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