Singapore is a country with an open economy. Suppose that Singapore fixes the value of their currency to UŠ dollars. If Singapore experiences hyperinflation, it can stabilise inflation by using its monetary policy freely.

Singapore is a country with an open economy. Suppose that Singapore fixes the value of their currency to UŠ dollars. If Singapore experiences hyperinflation, it can stabilise inflation by using its monetary policy freely.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter15: The Debate Over Monetary And Fiscal Policy

Section: Chapter Questions

Problem 8DQ

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Question

Singapore is a country with an open
economy. Suppose that Singapore fixes the
value of their currency to UŠ dollars. If
Singapore experiences hyperinflation, it can
stabilise inflation by using its monetary policy
freely.
is it true/false why?

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