Economics of Money, Banking and Financial Markets, The, Business School Edition (5th Edition) (What's New in Economics)
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Chapter 25, Problem 6Q
To determine

Whether the given statement is true or false:

“If countries fix their exchange rate, the exchange rate channel of monetary policy does not exist.”

Concept introduction:

Exchange rate channel is basically dependent on where the monetary policy is changing the real interest rates in comparison to the flexible exchange rates.

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