European Central Bank will keep its aggressive monetary stimulus that is, expansionary monetary policy in place, where as US will not continue to do so. "With the help of an equation", explain the effect of this on the long run depreciation of the US dollar

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter29: Exchange Rates And International Capital Flows
Section: Chapter Questions
Problem 7SCQ: How would a contractionary monetary policy affect the exchange rate, net exports, aggregate demand,...
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European Central Bank will keep its aggressive monetary stimulus that is, expansionary monetary policy in place, where as US will not continue to do so.

"With the help of an equation", explain the effect of this on the long run depreciation of the US dollar

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