Unformatted text preview: 7. Dollarization a. Currency fixing by adopting US dollar as one’s currency 8. Interest rates a. Must be equal for interest rate parity to hold under fixed exchange rates 9. Official Reserve Transactions a. Account used to record central bank transactions 10. Balance of payments deficit a. Balance when central bank sells foreign reserves...
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- Fall '06
- Monetary Policy, Foreign exchange market, United States dollar