Q1 external and internal equilibria are often contradictory

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Q1. "External and internal equilibria are often contradictory goals and the policy-maker is forced to choose between one and the other." Does this apply to the country with pegged exchange rate, and how to use analytical tools to explain it?

Q2. In recent years, how has the U.S. inflation rate compared with rates in other industrial financial systems? Why should we be careful in comparing inflation rates crosswise nations? The Federal Reserve Bank of St. Louis maintains a Web page devoted to international economic trends.

Reference no: EM13354117

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