Which exchange rate regime minimizes the effect on, Macroeconomics

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Which exchange rate regime minimizes the effect on

Imagine that domestic and foreign currency bonds are imperfect substitutes and that investors suddenly shift their demand toward foreign currency bonds, raising the risk premium on domestic assets (Chapter 18).

Which exchange rate regime minimizes the effect on output-fixed or floating?

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Macroeconomics: Which exchange rate regime minimizes the effect on

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