What is an overhsoot

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Reference no: EM13832501

Official intervention in the foreign exchange market does appear to be a useful policy when overshoots take place in fragile circumstances.

a. What is an overhsoot?

b. Explain the exact form of this official intervention to counteract a specific overshoot.

c. What does official intervention do that makes it useful?

Please answer specific questions, not general concepts

Reference no: EM13832501

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