Buy custom Inflation Targeting: Should Central Bank Go For It?
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1154 |
Essay's paper body
Volatility of the exchange rate
A study of the variability of exchange rate in countries who have adapted inflation
targeting shows that the though the variability decreased in the first 3 years of adoption of
the policy , the coefficient of variation has been huge when the overall period was
considered...
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Table 1). Such huge depreciations of currency would increase the dollardenominated
debt, mismatches between the various categories of assets and liabilities and
would increase the risk.
3. Price Indeterminacy[5]
One of the objectives of the inflation targeting is to let the investors, customers &
industry know the expected price level in the future...
Essay fragment
General points of the essay
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